Every year, the CBDT in India notifies the new income tax return forms and for the assessment year 2018-19 also CBDT has released the new income tax return forms. These forms will be applicable for the income tax return of 01-04-2017 to 31-03-2018 period. With the help of these slides you will be able to understand the new information required in these forms so that before filing the returns the assessee shall be ready with the desired information.

1. Income
tax
Updates
Changes in Income
tax return (ITR)
forms
AY 2018-19
RAPG & Co. Chartered Accountants
1

2. Brief about the document
• Every year, CBDT notifies the income tax
return forms for all assessees. For the
assessment year 2018-19 also CBDT has
released the new income tax return forms.
These forms will be applicable for the filing
the income tax return of 01-04-2017 to 31-
03-2018 period. With the help of this write
up we will be able to understand the new
reporting requirements so that before filing
the returns the assessee shall be ready with
the desired information.
• It is apparent with the changes that the new
ITR Forms requires self declaration on
various points to shift the onus on the
assessee to prove their claims for deductions,
expenses or exemptions.
• These ITR forms seek more information
from trusts, taxpayers who opted for
presumptive taxation scheme, investors in
shares of unlisted companies, so on.
• Let us discuss the changes in detail.
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2

3. Calculation of salary
income in detail:
• Detailed calculation of income from
salary;
• Restricted to single figure till last
year;
• To increase the transparency between
the assessee and department.
• The assessee may get these
information from Form 16 (Part B)
issued by the employer.
RAPG & Co. Chartered Accountants
3Relevant for ITR 1,2,3,4

4. Information required in
relation to Sale of un-
quoted shares:
• The new form requires full value
of consideration, fair market value
of shares and full value of
consideration as per section
50CA;
• It would be mandatory now for the
investors to obtain the valuation
report;
RAPG & Co. Chartered Accountants
4Relevant for ITR 2,3,5,6,7

5. Taxability of gifts under
other sources:
• A new provision has been inserted vide
section 56(2)(x) to include any taxpayer
within the ambit of taxability on account of
receipt of money or any property without or
inadequate consideration.
• From AY 18-19, any person receives money
or any property for without or inadequate
consideration (in excess of INR 50,000) shall
furnish the information of the same and pay
the tax accordingly.
RAPG & Co. Chartered Accountants
5Relevant for ITR 2,3,5,6,7

6. Presumptive taxation
scheme
• For tax payers of presumptive taxation scheme, new
ITR 4 form seeks details of 14 financial particulars
of business such as amount of secured/unsecured
loans, advances, fixed assets, capital account, etc.
• Also, the aggregate turnover shall be furnished by
the tax payer under ITR 4 as per the GST
provisions. In this way, the authorities will compare
the turnover as per GST and Income tax.
RAPG & Co. Chartered Accountants
6Relevant for ITR 4

7. Expense reporting
Registered and
Unregistered person
• The companies which are not required to
get the accounts audited under section
44AB of Income tax act, 1961, shall
furnish the information;
• The reporting of expenses incurred
during the relevant financial year in
respect to Registered/Un-registered
person;
RAPG & Co. Chartered Accountants
7Relevant for ITR 4

8. New requirement for IndAS
compliant company
• Though the IndAS is applicable on high net
worth companies since AY 2017-18 but there
was no requirement in regard to IndAS under
ITR forms;
• In fresh ITR forms, IndAS compliant
companies shall be required to report the
IndAS compliant financial statement as well;
• Further, any adjustment required for
calculation of MAT profit with respect to
other comprehensive income or other
adjustment due to IndAS reporting, can be
made under separate section;
RAPG & Co. Chartered Accountants
8Relevant for ITR 4

9. Changes w.r.t. reporting of
Depreciation:
• Rate of depreciation as allowable under
Income tax act, 1961 on block of assets is
restricted up to 40% as per the 29th Income
tax amendment rules, 2016;
• Therefore, new forms has replaced the
column of depreciation from
50%/60%/80%/100% to 40%;
• Further, new columns has been added to
include proportionate depreciation in case of
demerger, amalgamation, etc.
• In case the asset is not used exclusively for
business purpose, a separate disclosure can be
made in section 38(2).
RAPG & Co. Chartered Accountants
9Relevant for ITR 6

10. Reporting by Non-resident
assessees
• The new ITR forms allow non-
residents to furnish details of any
one foreign Bank Account;
• This would ease the process to
transfer the income tax refund
directly the foreign accounts of the
non-residents.
• Non-resident assessee (Individual)
shall file ITR 2 or 3. ITR 1(Sahaj)
is no more available for them;
RAPG & Co. Chartered Accountants
10Relevant for ITR 2, 3, 4, 5, 6 and 7

11. Reporting by Trusts
• Reporing of annual receipts, date of approval
granted and amount utilized during the year
for the stated objects;
• Any change in the objects which is not as per
the registration conditions, the trust has to
seek a fresh registration. The ITR-7 requires
the reporting of date of change of objects,
application date for fresh registration and date
of fresh registration;
• As per the Finance act, 2017, any donation by
a charitable institution to another charitable
institution shall not be treated as application
of funds. To give effect, the trust shall be
required to report the amounts separately to
add back into the taxable income.
RAPG & Co. Chartered Accountants
11Relevant for ITR 7

12. Other changes
• Particulars of natural persons who were
beneficial owners of shares holding not less
than 10% of the voting power at any time of
the previous year shall be reported in the ITR-
6;
• Report the deviation of ICDS as profit and
loss separately. Till now, the reporting was
required to net impact (negative or positive)
only;
• Additional information to claim the benefit
under DTAA in respect of Capital gains and
income from other sources;
• Penalty shall be payable at the time of
filing of return in case of any delay;
• Partner of a firm shall be filing ITR 3;
• Reporting of CSR expenditure separately
under ITR-6;
• Foreign currency receipts and payments
shall be reported by the companies not liable
to audit under section 44AB;
RAPG & Co. Chartered Accountants
12Relevant for ITR 2, 3, 4, 5, 6 and 7

13. RAPG & Co. Chartered Accountants
13
The information is based on the ITR forms
notified by the CBDT for Assessment year
2018-19.
RAPG & Co.
Chartered Accountants
Contact persons:
CA Neeraj Kumar +91 9999836182
CA Deepak Arya +91 9818449179,
info@rapg.in