has income taxable under section 115BBDA; or section 115BBE<\/em><\/p>\n(d) has assets (including financial interest in any entity) located outside India or has signing authority in any account located outside India;<\/p>\n
(e) has income from any source outside India;<\/p>\n
(f) has income to be apportioned between spouses governed by Portuguese Civil Code as per section 5A<\/p>\n
(g) has claimed any relief of tax under section 90 or 90A or deduction of tax under section 91;<\/p>\n
Form No. ITR-2<\/strong> <\/strong><\/p>\nITR 2 shall apply in the case of an individual not being an individual to whom Form ITR 1 appliesor a Hindu undivided family where the total income does not include incomeunder the head<\/strong>business or profession; The newly notified ITR-2 form is no longer applicable for individuals who have profits and gains from any business or profession. Such assessee now needs to use ITR-3 to file the return. Until last year, a partner was allowed to file the return using ITR-2.<\/p>\nIn case of capital gains, the taxpayers now need to give specific details. The new ITR forms have specific columns to report each capital gain exemption separately. Details of each capital gains exemption under Sections 54, 54B, 54EC, 54EE, 54F, 54GB and 115F need to be reported in its applicable column now. A taxpayer availing these capital gains exemptions needs to mention the date of transfer of original capital asset which was missing in earlier ITR forms.<\/p>\n
Form No. ITR-3<\/strong> <\/strong><\/p>\nITR 3 shall apply <\/em>in the case of a person being an individual or a Hindu undivided family other than the individual or Hindu undivided family filing Return in ITR 1 or ITR 2 or ITR 4 andhaving income under the head<\/strong>business or profession, be inForm No.ITR-3;<\/em><\/p>\nForm No. ITR-4 (Sugam) <\/strong> <\/strong><\/p>\nITR-4 shall apply <\/strong>in the case of a person being an individual or a Hindu undivided familyor a firm (other than a limited liability partnership firm),<\/em>deriving “income under the head Profits or gains of business or profession” and such income is computed in accordance with special provisions of presumptive income<\/strong> referred to in section 44AD, section 44ADA and section 44AE for computation of such income. ITR 4 seeks more disclosure:<\/strong>The presumptive taxation scheme – meant for small businesses such as shop owners and for professionals such as doctors – does not require the taxpayer to maintain books of account or get their financials audited. The assessees can pay a percentage of their total turnover as the tax. The old ITR-4 sought only four details — total creditors and debtors, total stock-in-trade, and cash balance as on the year end. But the new form asks for more financial details of the business such as the amount of secured and unsecured loans, advances, fixed assets, capital account and so on. The details sought essentially requires the person to maintain balance sheet to report the information asked. <\/p>\nIt may be noted that now, there is an additional requirement to quote GSTR No. and turnover\/gross receipts as per GST return filed. Further, fields have been added under Financial particulars where now an assessee has to declare the additional information with regard to Partners\/ Members Capital, Secured Loan, Unsecured Loan, Advances as well as details of Fixed Assets.<\/p>\n
Who cannot use <\/strong>ITR-4 (Sugam) : A<\/strong> person who,—<\/p>\n\na) has income from more than one house property or where there is a brought forward loos or loss to be carried forward under the head house property <\/p>\n
b) has income from winnings from lottery or income from race horses<\/p>\n
c) has income under the head capital gains<\/p>\n
d) income from speculative business or other special income <\/p>\n
e) income from an agency business or income from Commission or brokerage<\/p>\n
f) has agricultural income, exceeding Rs.5,000<\/p>\n
g) has income taxable under section 115BBDA; or section 115BBE;<\/p>\n
h) has claimed any relief of tax under section 90 or 90A or deduction of tax under section 91;<\/p>\n
i) having any asset (including financial interest in any entity) located outside India; or signing authority in any account located outside India; or income from any source outside India;<\/p>\n
Form No. ITR-5 <\/strong> <\/strong><\/p>\nITR-5 shall apply <\/strong>in the case of Partnership Firm, AOP, BOI and a person other than an individual, Hindu undivided family or a Company or a person (Trust, Society, Institution etc.) filing form ITR 7. <\/p>\nForm No. ITR-6 <\/strong> <\/strong><\/p>\nITR-6 shall apply <\/strong>in the case of a Company [other than a company claiming exemption under section 11 and those filing form ITR 7].<\/p>\nForm No. ITR-7<\/strong><\/p>\nITR-7 shall apply <\/strong>in the case of person including a company required to furnish Return under sections 139(4A) to 139(4F) or a company whether or not registered under section 25 of the Companies Act, 1956<\/p>\nCertain Audit Reports to be filed electronically <\/strong><\/p>\nWhere an assessee is required to furnish a report of audit specified under any provision of the Income tax Act, it shall be furnished electronically.<\/p>\n
Some ITRs <\/strong>not to be accompanied by any documents; <\/strong><\/p>\nThe return of income required to be furnished in Form SAHAJ (ITR-1) or Form No. ITR-2 or Form No. ITR-3 orForm SUGAM (ITR-4)<\/em>or Form No. ITR-5 or Form No. ITR-6 or Form No. ITR-7 shall not be accompanied by a statement showing the computation of the tax payable on the basis of the return, or proof of the tax, if any, claimed to have been deducted or collected at source or the advance tax or tax on self-assessment, if any, claimed to have been paid or any document or copy of any account or form or any other report of audit required to be attached with the return of income under any of the provisions of the Income Tax Act. <\/p>\nElectronic filing of ITR :<\/strong><\/p>\nAll taxpayers are eligible to e-file the Income Tax Returns. However Company, Firm or LLP and other taxpayers whose accounts are required to be tax audited under sec. 44AB, political parties, taxpayers having total income Exceeding Rs. 5 Lakhs and charitable trusts, Societies and Institutions having gross income exceeding exemption limit and other specified taxpayers required to furnish their return of income electronically. There has been no change in the manner of filing your returns. All returns will be filed electronically with the only exception being for the following taxpayers filing ITR – 1 or ITR -4 who can go ahead filing a paper return. a) An Individual of the age of 80 years or more at any time during the previous year; or b) An individual or HUF whose income does not exceed Rs. 5 lakh and who has not claimed any refund in the Return of Income.<\/p>\n
Taxation of Employee Stock Options :<\/strong><\/p>\nThe government had made changes to the taxation of employee stock option plan in an unlisted shares of a company in the previous year’s Budget. The amendments are applicable from assessment year 2018-19. The new provisions state that if unlisted shares are transferred at a price which is lower than its fair market value (FMV), it would still be taxed at the FMV that a merchant banker or a chartered accountant calculates as per Rules. While filing the return, employees will need to obtain valuation report in case of sale of unlisted shares to ensure that they correctly report the capital gains or loss. TheITR formalso asks for the detailed break-up of such transaction.<\/p>\n
Conclusion :<\/strong><\/p>\nIt is apparent that the new ITR forms have shifted the entire onus on the taxpayers to prove their claim for deductions, expenses or exemptions. <\/strong><\/p>\n Reproduced with permission from the AIFTP Journal <\/div>\n
\n\n| Disclaimer: <\/strong>The contents of this document are solely for informational purpose. It does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this document, the existence of mistakes and omissions herein is not ruled out. Neither the author nor itatonline.org and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of itatonline.org<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":" CA Narayan Jain has systematically analyzed the numerous income-tax return (ITR) forms issued by the CBDT for AY 2018-19 and explained the circumstances in which each has to be used. He has also elaborated on the documents that are required to accompany the returns. The consequences of not filing the returns within the prescribed due dates have also been explained in a clear manner<\/p>\n Read more ›<\/a><\/div>\n<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-5456","post","type-post","status-publish","format-standard","hentry","category-articles"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/articles_new\/wp-json\/wp\/v2\/posts\/5456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/articles_new\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/articles_new\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/articles_new\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/articles_new\/wp-json\/wp\/v2\/comments?post=5456"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/articles_new\/wp-json\/wp\/v2\/posts\/5456\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/articles_new\/wp-json\/wp\/v2\/media?parent=5456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/articles_new\/wp-json\/wp\/v2\/categories?post=5456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/articles_new\/wp-json\/wp\/v2\/tags?post=5456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} |
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