How to handle changes in Income Tax filing for the year 2017-2018

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 1- It can be filed by a taxpayer who is an ordinary resident and his salary earmarks up to 50 lakhs. Along with that, the taxpayer needs to furnish the details like Income from Salary, Income from House property, which was not required to be added until the last year. The Taxpayers needs to furnish the breakup of salaries like taxable allowances, perks, professional tax, and deductions if any, the details about house property(rent, interest, tax paid on the property). This would help CBDT to frame a better picture of the tax payer's liability towards the government. The new ITR forms can be used by both Hindu undivided families and individuals who do not earn income from any business or profession.
• ITR Form 2- This form can be filed by individuals or HUF having an income from other heads except for business or profession.
  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.
• NRI can claim the refund by providing the details about the foreign bank account, in which he/she has an account.
• ITR Form 1 or ITR Form 8- an individual can file returns in any of the form provided his age exceeds 80 years and his income doesn't exceed five lakh rupees.
• Other forms that have been added to the kitty are ITR Form-6, ITR Form 7 and ITR V.

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