Income tax filing deadline is near, and some people might get confused about which form they need to file as they are not aware of the changes in ITR forms. It is to be noted that if you fail to comply with the new requirements mentioned, you may get a notice from the Income Tax Department. Central Board of Direct Taxes (CBDT) notified the ITR forms at the beginning of the financial year. You need to comply with all the requirements in order to file ITR accurately. There have been many changes in ITR forms this year
Salaried employees with income below Rs. 50 lakhs per year and one house property need to fill ITR1 form while filing income tax return. There are changes made in ITR 1 form which if not complied can result in a notice from the income tax department.
Here is all you need to know about the changes in the ITR 1 form:
1. Salary break-up: While last year’s ITR 1 Form only asked you to fill income from salary or pension, income from one house property and income from other sources, the new ITR 1 Form asks for more details. According to the new form, you are now required to mention the whole salary breakup including allowances, the value of prerequisites, profit in lieu of salary etc. In the house property section as well, you now have to mention more details.
2. Section 234F: Under “PART D-COMPUTATION OF TAX PAYABLE”, a new field has been introduced to report the amount of late filing fee paid. If you are filing your return late then you need to fill this field and pay a late filing fee.
3. Cash deposited during demonetization: Demonetization happened in 2016 and taxpayers who made deposits during demonetization are now required to mention the details in their ITR forms. In old ITR 1 Form, this information was required to be filled in a column under “PART E – OTHER INFORMATION”. In this year’s ITR 1 form this column has been eliminated.
4. Amount claimed in the hands of spouse: In the Old ITR 1 Form, there was a column where you were required to fill any amount claimed in the hands of spouse according to the provisions of section 5A of the Income Tax Act, 1961. This had been eliminated in the new form.
5. Tax Return Preparer (TRP) details: A new field has been added to the form where you are required to fill Tax Return Preparer (TRP) details like ID number, name and signature etc. This field is mandatory for only those people who get their return prepared from a TRP but if you are preparing your return yourself then it is of no concern to you.
6. Not applicable to non-resident Indians: While the old ITR 1 Form was for non-resident Indians as well, the new ITR 1 form is only for a resident individual who had an income from salary, one house property or other sources like interest etc. with a total income of up to Rs. 50 lakh.
Any assistance or guidance needed in relation to Income Tax E-filing or any other matters, please reach out to us at contact@msassociates.pro
