Things you should know about New ITR Forms.

ITR FormsNew ITR Forms for AY 2018-2019

As per the new ITR forms, the existing some forms schedules have been changed/modified with new schedules which have been introduced.

The new form shifts the onus on the taxpayers to prove their claim for deductions, expenses or any exemptions. These forms seeks more information from taxpayers, trusts who have opted for presumptive taxation scheme, investors in shares of unlisted companies which goes on so forth.

The new key changes are combined in 28 new modifications compared to the last year. The top changes which would impact an individual taxpayer as below.

  1. ITR – 1 is the simplest form of income tax return filed by an individual who earns income from pension or salary/ from house property and from other sources. Further adding annual taxable income of the taxpayer individual with a limit of Rs. 50 laks and his total income calculated should not include from betting or gambling or any unwanted resources applicable as per law of new ITR -1 Filing.

It also requires a detailed calculation of income from salary and from house property which was restricted to single figure from last year.

  1. If a taxpayer opts for presumptive taxation scheme under section 44AD, 44ADA or 44AE, he will have to file the return for ITR -4. As the old ITR -4 was only for financial particulars of the business a) Total debtors, b) Total Creditors, c) Total stock-in-trade and d) cash balance. And the new ITR 4 form seeks 14 details of financial particulars of business such as unsecured loans/amount, advances, fixed assests, capital account etc.


  1. The new form has been withdrawn for a non – resident with ITR 1 particularly. Hence a non resident will have to choose either ITR – 2 or ITR – 3 to file his return of income for the assessment year 2018-2019.


  1. The incipient ITR 4 requires a taxpayer to provide the aggregate turnover reported by him in GST Returns. This supplemental information has been sought to culminate the erroneous practice of reporting different turnovers in erstwhile sales tax return and income-tax return. If any difference is found in turnover reported in GST return and ITR, presumptive taxpayers can expect a notice from the Dept. to explicate the mismatch in turnover.


  1. The incipient ITR Forms introduce concrete columns to report each capital gain exemption discretely. Details of each capital gains exemption under Sections 54, 54B, 54EC, 54EE, 54F, 54GB and 115F shall be reported in its applicable column now. Further, a taxpayer availing of these capital gains exemptions is required to mention the date of transfer of pristine capital asset which was missing in earlier ITR Forms.


  1. In the case of capital gain arising on transfer of unquoted shares, it would now be compulsory for the investors to obtain the valuation report. To ascertain that investors correctly report the capital gains from unlisted shares, the incipient ITR Forms require the taxpayer to provide figures of genuine sales consideration and FMV as resolute by a Merchant Banker or CA.


  1. Until last year, if a taxpayer failed to file the ITR afore terminus of assessment year, penalty under Section 271F could be imposed by the Assessing Officer only after initiating the penalty proceedings. After omission of this penalty provision by the Finance Act, 2017, tardy fees is levied under Section 234F if taxpayer does not furnish the ITR in time. The taxpayer shall now be required to pay tardy filing fees under section 234F along with interest under section 234A, 234B and 234C afore filing the ITR.


  1. For the Assessment Year 2018-19, an individual or an HUF, who is a partner in a firm, shall be required to file his ITR in Form ITR 3 only. Last year the partners were required to file return in ITR 2.


  1. After enactment of GST Act, the incipient ITR forms have introduced incipient columns to report CGST, SGST, IGST and UTGST paid by, or restituted to, assessee during the Financial Year.


  1. Individual taxpayers who are filing income-tax return in Form ITR 2 or ITR 3 or ITR 4 aren’t required to mention the gender, i.e., male or female or transgender, as the column of gender has been abstracted.

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