Income Tax Returns have undergone several changes with several additional disclosures. Here's a guide to filing your return for the Financial Year 2016-17 (AY 2017-18)

1. By CA Piyali Parashari
10/7/2017
THINGS TO REMEMBER WHILE
FILING YOUR INCOME TAX RETURN

2. INTRODUCTION
• It is the time of the year where you have to start filing your
Income Tax returns.
• The ITR for the Financial Year 2016-17 (i.e Assessment year
2017-18) for INDIVIDUALS have to be filed by 31.7.2017
• There are several changes made by the government which
you need to know for filing your return this year.

3. Who needs to file a Return?
If your income exceeds Rs 2.5
lakh for Financial Year 2016-17,
you need to file an Income Tax
Return.
• Remember that this income is
calculated before accounting for all the
deductions.
Taxable limit for senior citizens
is Rs 3 lakhs (age between 60
to 80 years) and Rs 5 lakhs for
super senior citizens (age more
than 80 years)
You have an option to file your
return online or physically but
• If your taxable income is MORE
THAN Rs 5 lakhs Online Filing is
COMPULSORY
• SENIOR CITIZEN: He may file a
physical return
Choose the correct ITR form
among those available else IT
department may reject the
return

4. ITR forms for the year
There are 7 forms this year
instead of 9 earlier
• ITR 2, 2A,3 replaced by ITR 2
• ITR 4 and 4S (Sugam) (renumbered
) as ITR 3 and ITR 4 (Sugam)
ITR 1 (Sahaj) form is a one-page
form and it can only be filed by
an individual with (taxable)
income of up to Rs50 lakh a year.
• This will include salary income, interest
income and income from one house
property,
ITR 2: Those who have income of
more than Rs50 lakh or own
more than one house property,
they will have to file ITR-2 form,

5. ITR forms for the year
TYPE OF FORM WHO CAN USE IT
ITR 1 For individuals who have income from salary,
one house property, other sources(such as
interest) and whose total taxable income is up to
Rs50 lakh
ITR 2 For individuals and Hindu Undivided Families
(HUEs) not carrying out business or profession
under any proprietorship; having more than
one house; having income from other sources
ITR 3 For individuals and HUFs having income from a
proprietary business or profession
ITR 4 (Sugam) For presumptive income from business
and profession

6. ITR forms for the year
TYPE OF FORM WHO CAN USE IT
ITR 5 For persons other than, (j) individual, (ii)
HUF, (W) company, and (iv) person filing
Form ITR-7
ITR 6 For companies other than those claiming
exemption under Section 11
ITR 7 For persons including companies required
to furnish return under sections 139(4A),
139(4B), 139(4C), 139(4D), 139(4E) or 139(4E)

7. QUOTING AADHAR
• The Finance Act, 2017, made it mandatory to quote Aadhaar
to file an ITR, with effect from 1 July 2017.
• The decision was challenged in the Supreme Court, BUT the
apex court allowed the decision of the government.
• You have to mention the 12-digit Aadhaar number or the 28-
digit Aadhaar enrolment number while filing the income tax
return.
• Till last year, it was optional to mention the Aadhaar number
while filing returns.

8. NEW SECTIONS IN ITR FORMS
Dividend income was earlier exempt from tax in the hands of the
assessee, irrespective of the amount of dividend received.
But now dividend income of more than Rs10 lakh will be taxable at the
rate of 10% and it is required to be reported in schedule OS
Income received by a person in the form of royalty for patents
developed and registered in India are to be taxed at the rate of 10%.
This will also be reported under schedule OS
Sec 80EE has been reintroduced for a FIRST-TIME HOMEBUYER:
He can claim a deduction of Rs 50,000 per year from Financial Year
2016-17 for each year till the loan is repaid. Hence total deduction is
Rs 2.5 lakhs per year.
The deduction is allowed only if the value of house is less than Rs50 lakh
with a home loan of less than Rs35 lakh, and loan is sanctioned in
FY2017.

9. COMPULSORY DISCLOSURES
DEMONETISATION:
Those who have deposited Rs2
lakh or more in a bank
account during the
demonetisation period, have
to fill a new column to give
details in the ITR of the money
deposited as well as details of
bank account such as name of
bank, IFSC code and account
number
UNEXPLAINED INCOME:
If any assessee has any
unexplained income or
investments, she has to report
such unexplained income in
the new ITR forms, and such
amount will be taxable at the
tax rate of 60% plus surcharge
and cess,

10. ADDITIONAL DISCLOSURES
ASSET DISCLOSURES
Individuals and HUF having
income of more than Rs 50
lakhs in a year have to declare
the value of their assets and
liabilities:
1. cost of immovable property,
jewellery, vehicles, bank and
cash balance
2. address of immovable
property and the description of
movable assets
DISCLOSURE OF INTEREST
disclose interests held in the
assets of firms, or association
of persons as a partner or
member
DISCLOSURE OF FOREIGN ASSETS
& INCOME
Give details of your foreign bank
account’s holding status (both as
an owner and as a beneficiary),
account opening date, interest
accrued during the year and
schedule and field number under
which the same income is
reported

11. Don’t make these mistakes
Incorrect Personal Details:
Ensure the bank details for
receiving refund is correct to
avoid wrong credit to another
person’s account
Not Studying Form 26AS
Form 26AS or Tax Credit
Statement gives you all the
important details of taxes you
have paid and also all taxes
deducted on your income by
your bank or employer or
buyer. It also indicates the
total taxable income on which
tax was deposited. Cross
checking is mandatory before
filing the Return
Excluding FD Interest from
your Income: Interest income
from your savings account is
exempt up to Rs 10,000, but
interest income from your FD
isn’t

12. Don’t make these mistakes
Under-reporting your Income
These days, tax department is easily able to track your income through
your PAN
Every large transaction is reported annually by companies, banks and
other financial entities to the government.
You must disclose income earned through shares, mutual funds,
property capital gains, etc. If you have switched jobs multiple times in
a year, you must bring your income from all the employers to light
Not Verifying Tax Return
If you e-file your taxes, you can either e-verify your taxes from the I-T
department’s e-filing portal or get physical verification done by
sending a printed and signed copy of ITR-V to CPC-Bengaluru

13. RETURN FILING TIMELINES
Last date : 31st July
For all persons who do not
require an audit to be
performed for their books of
account
1. A person or employee who
is paid salary
2. A person who is self-
employed or professional (a
proprietor of a business)
3. A freelancer or a consultant
Last date : 30th September
All persons and entities who
are required to or are liable to
undergo an audit of their
accounting books
1. A Business entity
2. Self-employed person or
professional (where audit of
accounts is required)
3. A working partner
employed with a firm or a
consultant who requires to
have an audit performed on his
accounting book

14. SPECIAL RETURNS
RETURN OF LOSS
• Loss in business in the earlier
years could be carried forward
and set off against income of
current years if the return of
losses for those years were
filed within due dates and
those losses were assessed.
This reduces current year tax
liability.
BELATED RETURNS.
If an individual misses the
deadline of 31st July for return
pertaining to FY 2016-17 (AY
2017-18), he can file a belated
return by March 31, 2018.
Even if one is unable to file one's
return, at least the taxes, if any,
should be paid to avoid high
interest.
REVISED RETURNS
If there was some mistake or omission in the filing of the return, to
correct these mistakes a revised return can be filed within 1 year after the
Assessment Year
However a BELATED RETURN cannot be revised

15. INTEREST, PENALTY & REFUND
PENALTY
• Rs 5,000 for failure to furnish return of income
• Penalty for any delay beyond July 31 is not levied automatically and is
at the sole discretion of the tax officer.
INTEREST ON DUE AMOUNT OF TAX
• if the taxpayer files the return of income after the due date, simple
interest of 1 per cent per month or part of a month is levied and the
calculation of interest starts from the very next day from the due
date.
INCOME TAX REFUND:
If you are eligible for a tax refund, you will get it ONLY
after you have filed your Return. The I-T Department pays
interest of one-half per cent for every month calculated
from April 1 of the assessment year

16. For any queries contact
CA Piyali Parashari
piyali.sinha1@gmail.com
THANK YOU