Changes in Income Tax Return Filing – Like every year, the filing of Income Tax Return this year will also be a bit different thanks to the new changes in Income Tax Return filing for the FY 2017-18 brought in by the government.
Here’s a sneak peek into new Changes in Income Tax Return Filing.
New Changes in Income Tax Return Filing
Linking of Aadhaar card
The quoting of Aadhaar card while filing an ITR has been made mandatory from July 20
onwards. If you don’t have an Aadhaar card, get enrolled in it now. Furthermore, the recent
release from Central Board of Direct Taxes (CBDT) also states that you are required to link your Aadhaar number with PAN as a part of the essential pre-requisite. Besides, it has also been virtually observed that IT servers are not accepting ITRs if you’ve not linked your PAN with Aadhaar. here’s Aadhar card link to Sbi Bank Account online and Offline
The Demonetization Impact
Anyone who has deposited a total of 2 lacs or more cash including the old and new currency notes in any of the savings/current or loan accounts between the dates 9 th Nov 2016 to 30 th Dec 2016 will have to report this transaction while filing an Income Tax Return. This applies to all ITR forms including the ITR 1.
Minor Amendments in ITR Form Numbers
The IT department has changed the form numbers. Below is a complete list of form that one has to fill to file an income tax return for the assessment year 2017-18 applicable for FY 2016-17 return filing:-
- 1. ITR 1: This form is to be filled by those who are earning a total income of Rs. 50 lacs
from their salary, one house property, bank deposits etc.
- 2. ITR 2: This form is to be filled by individuals and Hindu Undivided Families (HUFs) who are generating income from other sources (non-business) such as by selling gold, real- estate, mutual fund units, etc. This ITR form has merged the previous ITR 2/ 2A and 3 forms which were valid for FY 15-17.
- 3. ITR 3: This form is appropriate for individuals and Hindu Undivided Families (HUFs)
whose source of income is a proprietary business or profession. This form has replaced
ITR 4 applicable for FY 15-17.
- 4. ITR 4: For individuals having presumptive income from business and profession. It is
swapped ITR 4S used in FY 15-16.
Apart from these few changes in the ITR forms, the other forms remain the same.
Filing ITR is mandatory even if you only exempt Long-Term Capital Gain (LTCG)
As per the new ITR amendment, even if your taxable income is less than the basic exemption limit of Rs 2,50,000, but due to exempt Long-Term Capital Gain (LTCG) the total amount increases from 2, 50,000, then filing an Income Tax Return is mandatory for you as per the new modification is done in the last provision of section 139(1) of the Income Tax Act.
Increased Rebate Under Section 87A:
According to the section 87A of Income Tax Return, you are entitled to a rebate of up to Rs
5000/-, if your taxable income (total income – deduction under sector 80) is Rs 5lacs or less, but if your tax liability is less than Rs 5000/-, you will be restricted for this rebate.
Additional Benefits for First-time Homeowners
In the new amendment, taxpayers who do not have a house can claim deduction for the interest paid up to Rs 50K (under section 80EE of the new income tax act) for a loan taken for a residential property. In addition to this, they are also eligible to get a deduction of Rs. 2lacs under section 24(b). To avail this benefit, one needs to satisfy the following conditions:-
- The loan should be approved between 1 April 2016 to 30 March 2017
- The loan amount should not be more than 30 lacs and the residential property should not cost more than 50 lacs.
- He/she should not be the owner residential property at the time of purchasing a house
LTCG Exemption for Investment in Startups
Under session 54GB, if you have earned Long-term Capital Gain (LTCG) by selling your old
property (house or land) and have invested the money in equity shares for a new business,
such gain will not be taxable.