How to handle changes in Income Tax filing for the year 2017-2018
Planning to file Income Tax return for the financial year 2017-18? Read this article to know how to go about this process and what all new changes have been brought into the form which you need to take care of while filing the return.
Call it an aftermath of demonetization or implementation of GST or other sweeping reforms made by the Modi government, the number of new income tax files has been increased nearly by a crore. The statistics clearly reflect that there is a whopping jump of 26% in the income tax returns. Needless to say that these increased numbers, will help the government to meet the direct tax collections target for the financial year and will give a boost to the further reforms. The government has further made a step to bring a change in the income tax filing 2017-18. Will it prove to be a boon or a curse? Let's have a look.
New ITR forms launched- In order to curb the tax evaders; the government has asked the taxpayers to link their PAN (both tenant and landlord) number while providing the details for the house property. While these details were not mandatory until the last financial year. The new forms for the year 2017-18 have been released n 3-April-2018, digitally.
Changes made in the form
ITR Form 3- The businessman or a person who earns income from a particular profession need to file a separate form ITR-3 or ITR-4 Sugam, which requires the taxpayers to furnish the details intricately.
If an income taxpayer is not able to file the return until 31 December, he/she will attract a penalty of Rs 10,000. This would ensure that the tax returns are filed in an adequate time frame and the Revenue Authorities have enough time to look into the matter.
In order to lend authenticity to the document, a small verification line has been added to the document, in which the taxpayer need to declare in what capacity he is filing the income tax form and whether he/she is competent enough to do that. This puts a little more burden on the person who is filing the tax returns and it will act as a declaration statement.
These sweeping reforms would definitely earmark a new era of transparency and kick out the tax evaders from the bud.