New ITR Form For 2017-18, e-filing Mandatory for Demonetization Cash Transactions

Income Tax department has notified new Income Tax rationalized form Sahaj Form – I for filing income tax returns. They have also made Aadhaar number and disclose bank deposits of more than Rs 2 lakh post-demonetization i.e. November 9 to December 30, 2016 mandatory. 

The Income Tax Return Form-1 (Sahaj) will replace the existing 7-page form. Sahaj form – I makes mandatory quoting of 12-digit bio-metric identifier Aadhaar number along with Permanent Account Number (PAN) and also seeks details of cash in excess of Rs 2 lakh that was deposited in bank accounts in the 50-day post-demonetization window. The e-filing facility for Sahaj ITR-1 is enabled from April 1 and ITRs can be filed till the stipulated deadline of July 31.

Sahaj Form – I can be filed by an individual having income of up to Rs 50 lakh from salary, house property and interest. Currently, SAHAJ (ITR 1) is filed by salaried employees and ITR 2 by individuals and HUFs whose income does not include income from business. 

Read : How To Exchange Banned Rs 500 & Rs 1000 Currency Notes ?

Who all Can’t use the New ITR Form – I ?

Simplest ITR form will not be used by those earning total income of more than Rs 50 Lakh, those earning dividend income of more than Rs 10 lakh and those whose total income includes cash credits, unexplained investments, unexplained money etc.

Those earning dividend income of more than Rs 10 lakh, those whose total income includes cash credits, unexplained investments, unexplained money etc.

Government has discontinued form ITR 2A which is being used by individuals & HUFs not having income from business or profession and capital gains and by those who do not hold foreign assets.

[box type=”info” ]”The Central Board of Direct Taxes has notified Income- tax Return Forms (ITR Forms) for the Assessment Year 2017-18. One of the major reforms made in the notified ITR Forms is the designing of a one page simplified ITR Form-1 (Sahaj),” CBDT said in a statement. They also said ” move would benefit more than two crore tax-payers who will be eligible to file their return of income in this simplified Form.”[/box]

Read : Download Income Tax Calculator FY 2016-17, AY 2017-18 in Excel Format

Details to be filled in New Income Tax Form Sahaj Form – I

1. New Sahaj Form – I has made the form simplified where tax computation and deductions have been rationalized and simplified for easy compliance.
2.  Besides personal details, an income tax filer needs to disclose only his income from salary or pension, one house property and other sources like interest. 
3.  Bank details are to be filled in the column. Details of advance tax, self-assessment tax payments and tax deducted at source come next.
4.  In the column for providing bank details, cash deposited in excess of Rs 2 lakh during November 9 to December 30, 2016 has to be mentioned.
5.   Instead of 20 columns of deductions in the old form, only four deductions claims in respect of Section 80C, 80D, 80G and 80TTA need to be filled.
6.  The existing ITR Forms ITR-2, ITR-2A and ITR-3 have been rationalized and a single ITR-2 has been notified in place of these three forms. The total number of form reduced to seven from existing nine.
7.  ITR-4 and ITR-4S (Sugam) have been renumbered as ITR-3 and ITR-4 (Sugam) respectively.
8.  There will be no change in the manner of filing of ITR Forms and all the returns are to be filed electronically.
9.  At the time of filing the form, the taxpayer has to fill in PAN, Aadhaar number, personal information and information on taxes paid.
10. TDS will be auto-filled in the form. 
11. Post-July 1, as per amendments to the Finance Bill 2017, it would become mandatory for an assesses to provide the Aadhaar number or the number showing that he has applied for Aadhaar in the ITR.

Read :  Aadhaar Compulsory in Filling I-T Return, New PAN from July, 1st

Exclusion :  ITR-1 (Sahaj) or ITR-4 (Sugam), an individual of the age of 80 years or more, an individual or HUF whose income does not exceed Rs 5 lakh and who has not claimed any refund in the return of income, have an option to file return in paper form.

ITR 4 (filed by Individuals & HUFs having income from a proprietary business or profession) rename as ‘Sugam’ and ITR-4S will be substituted.