In Today’s Article at Myonlineca, we will tell you Income Tax Return Forms Released for the FY 2017-18.
Income Tax Return (ITR) is a form used to apply for income tax in the income tax department. A tax return is in the predefined format where according to the income figures used to calculate tax itself, it is written in the documents by income tax itself. Various forms of income tax return form include ITR1, ITR2, ITR3, ITR4, ITR5, ITR6, and ITR7. Income Tax return forms differ based on the criteria of the assessee’s income source and the category of the assessee.
According to the Income Tax Act, 1961 and 1962, citizens are required to file returns in the income tax department income tax at the end of every financial year. These returns should be filed before the due date, which has been earning through the year, whether through wages, interest, dividend, capital gains or other profits.
Why filing returns are mandatory:
- If you are a resident person and have an asset or financial interest in an institution located outside of India. You are required to file your income tax return.
- When you receive income from a religious purpose or a research association or news agency, political party, educational or medical institute, property acquired under the trust for the trade union, you need to file income tax returns and not Benefits are not required for university or educational institution, a hospital.
- Proof of return filing is also necessary when applying for a visa.
- To take a loan, proof of return filing is also required when applying.
Benefits of filing tax returns:
- If you are the owner of foreign property then the ITR is mandatory.
- ITR is required to claim any tax deduction.
- You can easily get approved loan
- You will need an ITR to claim any tax refund.
- If you are investing in the equity market and are selling or buying a stock, then filling income tax returns can be beneficial to you.
- Income tax returns are necessary to qualify for business organizations.
Who is to fill Income Tax Return?
The person whose income is more than 5 lakh has to pay an income tax return. But even if the income of the person is less than 5 lakh, there are many such situations when he reads to file income tax returns. If you have invested in an FD, the interest coming from it will also be your income and it will have to be filled out, if you have rented your house then the income that comes from it also has to be filled in an income tax return, on salaries and savings accounts. Along with the interest, you also have to pay an income tax return even if you have income
New Updates regarding Income Tax Return Form
Central Board of Direct Taxes (CBDT) has issued Income Tax Return Form (ITR Form) for the assessment year 2018-19. Simple ITR Form-1 (Sahaj) of one page was notified for tax assessment year 2017-18. This initiative benefited about 30 million taxpayers who filed their returns in this simple form. Even simple page-1 (seamless) of one page has been notified for tax assessment year 2018-19.
ITR Form-1 (SAHAJ)
This ITR Form-1 (SAHAJ) can be filed by any person who is resident in here, whose income is up to Rs 50 lakhs and the salary, a house property / other income (Interest etc.) is earning. Apart from this, the parts related to the wages and housing property have been rationalized and it has been compulsory to provide basic details related to the income received from the wages (as is available in Form 16) and income from the property.
Features of SAHAJ Form
- The simplest form is the Sahaj ITR-1.Sahaj form in which there are 18 different points or rows under Section 80 of the Income Tax Act. Under this section, a claim of deduction of up to Rs 1.5 lakh can be claimed on various types of investments and savings, including life insurance, PPF, fixed bank deposits.
- The exemption under 80C.Similarly, there is a provision of deduction from total income of medical insurance premium paid under section 80D.
- The official said the form has been notified and is available on the Income Tax Department website.
- Farms are available from ITR-1 to ITR-6. Now, paying only 5 percent of the taxes in the new fiscal year, 2.5 lakh to 5 lakh rupees annually, will have to pay 5 percent tax instead of 10 percent. The government claims that this will save most taxpayers from the annual savings to Rs.12,500.
- But if the annual income of one crore or more, then their surcharge and cess, which will be included in their tax, even if they are added, their savings will be about Rs. 15,000.
- Major changes in the exemption under the 87A will now benefit only those earning up to Rs 3.5 lakh annually after changes in the rules of exemption in taxes under Section 87A of income tax. So far, the income earned up to Rs 5 lakh was benefiting up to Rs 5,000 as a tax deduction, but now the amount of the rebate has been reduced to Rs 2,500.
- A major change has been made for mandatory income tax return firms, that they will now also be required to specify their base number. It is notable that until last year, it was voluntary to give the Aadhaar number for the returnees. Typically, 10 percent surcharges of Rs 50 lakh to Rs 1 crore annually, those who earn annually, will have to pay 10 percent surcharge on tax. People who are super rich or earn more than 10 million people already give 15 percent surcharges.
- Property investors will get more discounts. Property investors will be able to get tax exemption beyond the new financial year. Now, for the calculation of long-term capital gains, you can keep the property for only 2 years instead of 3 years.
- Taxpayers have to pay tax at 20 percent with indexation on selling a 2-year-old property under the new rule. However, if the capital gain is again invested, then this tax will be exempted tax liability will not be less, the government has given its base year or base year to April 1, 2001. Earlier it was April 1, 1981, but due to this change, there would be fewer capital gains on selling the property, which will reduce tax liability significantly.
- Rajiv Gandhi Equity Savings Scheme will not get any tax relief now, from the year 2017-18 on investing in the Rajiv Gandhi Equity Savings Scheme. No relief in tax. But those who have invested it in the financial year 2016-17, they will get the benefit of rebate under the rules of the scheme.
I hope you like this article about ITR Forms Released for the FY 2017-18. still, if you are confused you can check out our website to know more about Filing under SAHAJ Form.