Salaried individuals, Professionals, as well as self-employed individuals, can start ITR filing for the financial year 2018-19 with the Income Tax Department issuing ITR Form 1 and Form 4 from today.
ITR Form 1 (Sahaj) and 4 (Sugam) are available on income tax e-filing portal for online filing or can also be downloaded.
Also Read: ITR 1 (Sahaj) for Filing Income Tax Return
ITR Form 1 which is also known as Sahaj is the most commonly used form for filing income tax returns by salaried individuals. It is meant for individuals drawing salary upto Rs. 50 lakh. While Form 4 which is called as Sugam is meant to be filed by individuals having professional or business income and HUFs or firms having income upto Rs. 50 lakh.
As per the notification issued by Central Board of Direct Taxes (CBDT), the income tax department has introduced certain changes in the forms while keeping the broad details same. Some of the changes are the followings:
- Additional columns have been included which require the tax assessee to divulge more information related to professional income, property transactions and residential status.
- Individuals who are either appointed as a director in a company or have invested in equity shares of an unlisted company. Directors of any of the listed or unlisted company are mandated to file ITR-2 from now on along with details such as Directors Identification Number (DIN), PAN etc. The move is expected to help the tax department to clamp down on shell companies and curb money laundering practices.
- CBDT has mandated all the ITR filers to Aadhaar number in the forms. Any ITR filed without mentioning the Aadhaar of the applicant will not be processed.
- Paper filing of the ITR is now allowed only for those who are more than 80 years old and filing either Sahaj or Sugam forms.
- Tax filers claiming for income tax exemption on agricultural income are now required to provide additional details such as size and location of the farmland, nature of farmland (irrigated/ rain-fed) and nature of land holding (self-owned or on lease).
The changes introduced to ITR forms are expected to increase transparency and narrow down the scope of tax evasion. While the last date for filing ITR is July 31, it is advisable to file tax returns as soon as possible to avoid any late filing penalty and claim tax refund early.
Also Read: Know More About ITR Form-4 (Sugam)