Income Tax Return Forms AY 2017-18 (FY 2016-17) – Which form to use?

CBDT notified the ITR or Income Tax Return Forms AY 2017-18 (FY 2016-17). There are few major changes in these forms. Let us see in detail these changes and understand which form you can use.

There is no change in the manner of filing of ITR Forms as compared to last year. All these ITR Forms are to be filed electronically. However, where return is furnished in ITR- 1 (Sahaj) or ITR-4 (Sugam), the following persons have an option to file return in paper form-

# An individual of the age of 80 years or more at any time during the previous year; or

# An individual or HUF whose income does not exceed five lakh rupees and who has not claimed any refund in the return of income.

Income Tax Slabs for FY 2016-17 (AY 2017-18)

Before understanding the Income Tax Return Forms AY 2017-18 (FY 2016-17), let us first understand the taxation for FY 2016-17 or AY 2017-18.

Below is the chart about Capital Gain Tax for FY 2016-17 (AY 2017-18)

Now you might have got the clarity about in which tax slab you fall and how much is your tax liability.

Income Tax Return Forms AY 2017-18 (FY 2016-17) -Which form to use?

Before jumping to know about the forms, let see the new changes in Income Tax Return Forms AY 2017-18 (FY 2016-17).

# Launch of new SINGLE PAGE ITR Form-1(Sahaj). This initiative will benefit more than two crore tax-payers who will be eligible to file their return of income in this simplified Form.

# The number of Income Tax Return Forms AY 2017-18 (FY 2016-17) have been reduced from the existing nine to seven forms.

# The existing ITR Forms ITR-2, ITR-2A and ITR-3 have been rationalized and a single ITR-2.

# ITR-4 and ITR-4S (Sugam) have been renumbered as ITR-3 and ITR-4 (Sugam) respectively.

# There is no change in the manner of filing of ITR Forms.

# Return is furnished in ITR- 1 (Sahaj) or ITR-4 (Sugam), the following persons have an option to file return in paper form:- (i) an individual of the age of 80 years or more at any time during the previous year; or (ii) an individual or HUF whose income does not exceed five lakh rupees and who has not claimed any refund in the return of income.

# Quoting your Aadhaar number while filing IT Return is now mandatory.

# Linking Aadhaar number as of now is not mandatory (due to some hiccups in errors), but future is Aadhaar linked ITR only.

# A new column introduced in all ITR Forms to report on cash deposited of Rs.2 lakh or more by taxpayers in their bank accounts during the demonetization period, i.e., from 9th November 2016 to 30th December 2016.

# A new field has been provided in new ITR Forms under Schedule VI-A deductions to claim home loan interest under Section 80EE (Section 80EE allows deduction on home loan interest for first time home buyers. This deduction is over and above the Rs 2 lakhs limit covered under Section 24(b)).

Now let us see the new Income Tax Return Forms AY 2017-18 (FY 2016-17) one by one.

ITR 1 (Sahaj) Form For Assessment Year 2017-18

This form can be used only for the income generated during FY 2016-17.

You can use this form in case-

# Your Income is from Salary or Pension;

# If you have income from One House Property (excluding cases where loss is brought forward from previous years);

# If your income from Other Sources (excluding winning from lottery and income from Race Horses, Income taxable under section 115BBDA (As per Section 115BBDA the dividend received from domestic company is taxable at rate of 10% if aggregate amount of such dividend exceeds Rs. 10 lakh) or Income of the nature referred to in section 115BBE (As per Section 115BBE any unexplained credit or investment attracts tax at 60% (plus surcharge and cess, as applicable), irrespective of the slab of income.);

#  In a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories.

You can’t use this form in case-

# If your total income for the assessment year 2017-18 exceeds Rs.50 lakh;

#  Income from more than one house property;

#  Income from winnings from lottery or income from Race horses;

# Income taxable under section 115BBDA;

#  Income of the nature referred to in section 115BBE;

#  Income under the head “Capital Gains”;

#  Agricultural income in excess of ?5,000;

# Income from Business or Profession;

# Loss under the head ‘Income from other sources’;

# Person claiming relief under section 90 and/or 91;

# Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India;

# Any resident having income from any source outside India.

Download the new ITR 1 (Sahaj) Form For Assessment Year 2017-18

ITR 2 Form For Assessment Year 2017-18

You can use this form in case-

# Can be used by an individual or a Hindu Undivided Family (HUF)

# Income from Salary / Pension;

# Income from multiple House Property;

# Income from Capital Gains;

# Income from Other Sources (including winnings from lottery and income from race horses).

# An asset in foreign country or income from a source outside India

#Agricultural income of more than Rs 5,000

Further, in a case where the income of another person like spouse, minor child, etc., is to be clubbed with the income of the taxpayer, this Return Form can be used if income to be clubbed falls in any of the above categories.

You can’t use this form in case-

# If your income for the year includes income from Business or Profession.

Download ITR 2 Form For Assessment Year 2017-18

ITR 3 Form For Assessment Year 2017-18

# The old ITR 4 now renamed as ITR 3.

# This ITR3 can be used by individuals and HUFs.

# You can use this form if you have income source from proprietary business, profession or having income as a partner in a Partnership firm.

# You can report the incomes like income from salary, multiple house properties, lottery winnings, capital gains, speculative income i.e. horse race along with your business or professional income.

Download ITR 3 Form For Assessment Year 2017-18

ITR 4S Sugam Form For Assessment Year 2017-18

You can use this form in case-

# It can be used by an individual/ HUF/ Partnership Firm.

# Business income where such income is computed in accordance with special provisions referred to in sections 44AD and 44AE of the Act for computation of business income.

# Income from Profession where such income is computed in accordance with special provisions referred to in sections 44ADA.

# Salary/ Pension

# Income from One House Property (excluding cases where loss is brought forward from previous years).

# Income from Other Sources (excluding Winning from Lottery and Income from Race Horses).

You can’t use this form in case-

#  Income from more than one house property

# Income from Winnings from lottery or income from Race horses

# Income under the head “Capital Gains”, e.g. Short-term capital gains or long-term capital gains from sale of house, plot, shares etc.

# Income taxable under section 115BBDA

# Income of the nature referred to in section 115BBE

# Agricultural income in excess of Rs.5,000

#  Income from Speculative Business and other special incomes

# Income from an agency business or income in the nature of commission or brokerage

# Person claiming relief of foreign tax paid under section 90, 90A or 91

# Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India

# Any resident having income from any source outside India.

Download ITR 4 Sugam Form For Assessment Year 2017-18

Hope this much information is sufficient for you in choosing the Income Tax Return Forms AY 2017-18 (FY 2016-17).