Your Taxes



What are the changes in the income tax return (ITR) forms applicable for individuals for the Assessment Year 2017-18?

A S Ramesh

The Central Board of Direct Taxes (CBDT) notified income-tax return forms (ITR forms) for Assessment Year 2017-18 in April 2017. CBDT, as a measure of rationalisation, has reduced the total number of ITR forms from nine (for AY 2016-17 tax filings) to seven (for AY 2017-18 tax filings). ITR forms applicable to the individuals are ITR 1, ITR 2, ITR 3 and ITR 4. The applicability of the same is given in a table for your reference.

Below are the key changes made in the ITR Form and the ITR filing process:

ITR 1 has been simplified into a one-page ITR form. Only commonly used sections for deductions have been provided; taxpayer may use the column ‘any other’ for other deductions. Schedule of TDS and TCS have been merged. New columns to report exempt dividend income and long-term capital gains have been provided.

Previous ITR 2, ITR 2A and ITR 3 have been replaced with a single ITR 2.

A new column is introduced in all the ITR forms to report the cash deposited by the taxpayer in their bank accounts during the demonetisation period, that is, November 9, 2016 to December 31, 2016. However, this is applicable only where the taxpayer has deposited ₹2 lakh or more during the said period.

Quoting of Aadhaar number is now mandatory for the return of income to be filed on or after July 1, 2017 by individuals who qualify as resident under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016. In case the taxpayer does not have the Aadhaar number and has applied for the same, then he may provide the enrolment ID of his Aadhaar application.

The above are only the key general changes introduced in the ITR forms. There are other changes as well which are more specific to an ITR form and the source of income a person might have, which needs to be looked into at the time of filing the return of income.

The writer is a practising chartered accountant. Send your queries to taxtalk@thehindu.co.in

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