The document summarizes key changes to Indian income tax return (ITR) forms for the 2018-19 assessment year. Some of the major changes include: - ITR-1 can now only be filed by individuals with income up to Rs. 50 lakh instead of Rs. 5 lakh. Non-resident Indians must now use ITR-2. - Additional details must be provided for deductions, allowances, perquisites, capital gains, foreign income and assets, GST payments, and donations. - Companies must provide more details on accounting, CSR spending, foreign transactions, and beneficial owners. - Political parties must disclose any cash donations over Rs. 2,000. Charitable trusts face

1. Summary of Key Changes
in ITR Form for A.Y. 2018-19

2. For Individual Assessees
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ITR-1 can be filed by an individual with an income of up to Rs. 50 lakh. This form is the form that most salaried individuals fill up. Salary and house property details are to be
inserted in separate fields and in a break-up format as available in Form 16. Taxpayers will have to provide details on allowances that are not exempt, value of perquisites,
profit in lieu of salary and deductions claimed under Section 16.
Non-Resident Indians (NRIs) will now have to use ITR Form-2 to file their returns as per the new rules instead of ITR-1.
ITR-2 form is no longer applicable for Individuals or HUF who have profits and gains from any business or profession, who are now required to file their return in form ITR-3.
Further, an individual or an HUF, who is a partner in a firm, shall also be required to use ITR-3 to file their Income Tax Return.
Under the TDS schedule, the details of TDS & PAN of Tenant as per Form 26QC for TDS made on rent as per Section 194-IB of the Act are to be furnished.

3. For Corporate Assessees
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Every company, who is not required to get its accounts audited under Section
44AB, to provide details viz. exempt transactions, transactions with composite
suppliers, transactions with registered or unregistered supplier under GST
A new Schedule for IND AS Compliant companies is introduced, wherein they shall
be required to disclose the balance sheet and profit & loss account in the same
format as prescribed under Division II of Schedule III to the Companies Act, 2013
(i.e., IND AS Financial Statements). Also it incorporates necessary adjustments of
‘Other Comprehensive income’ to calculate book profits as per Section 115JB
of the Act.
A new column has been inserted to provide details of apportionments made by
the companies from the net profit for the CSR activities in the Balance Sheet
Schedule.
The new schedule has been introduced which requires breakup of payments and
receipts in foreign currency in case of Assessees, which are not liable to get its
accounts audited u/s 44AB of the Act.
It requires every unlisted company to provide details of all beneficial owners (viz.
name, address, percentage of shares held and PAN of the beneficial owners)
holding 10% or more voting power in such company.

4. For All Assessees
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A new row is added to enable the assessee to fill the details of late filing fees (it is
now mandatory to pay the late filing fees in case of late filing of the return of
income).
New columns introduced in TDS Schedule which would allow Dept. to easily
correlate the PAN, amount of income and TDS thereon as disclosed by both the
parties in their respective return of income. It would make it convenient for the
assessee to claim the credit of tax deducted in name of another person.
New form allows non-residents to furnish details of any one foreign bank account
for the purpose of payment of income-tax refund.
Assessees covered by presumptive income scheme (i.e. Section 44AD, 44ADA
and 44AE) are required to fill in further details viz. as the amount of secured and
unsecured loans, advances, fixed assets, capital account and so on (earlier only 4
details — total creditor and debtors, total stock-in-trade, and cash balance was
required to be filled). GST number of the assessee and turnover as per GST
return is also required to be filled.
The revised form requires reporting of CGST, SGST, IGST and UGST amount paid
or refunded.

5. 4
New ITR Forms requires FIIs and other assessees to provide details of Actual sales consideration, FMV as determined in prescribed manner and Deemed full value of
consideration in respect of sale of unquoted shares as per Section 50CA of the Act
The Income Tax department has "done away with" the column that sought details on cash deposits made post demonetization last year. The new ITR form will not ask for
these details.
New columns have been inserted in all ITR forms except ITR 1 and ITR 4 under 'Schedule OS' to report any income as specified in Section 56(2)(x).
For ITR 3, 5 and 6, there is an additional requirement to disclose depreciation disallowed u/s 38(2) of Act and enable the entities to claim proportionate depreciation in the
event of demerger, amalgamation, etc.
The new ITR forms have replaced depreciation rates of 50/60/80/100 percent with the highest rate of depreciation for any block of asset to 40%.
New ITR forms make consequential changes to report the income earned from carbon credits and tax thereon under section 115BBG.
Every assessee claiming DTAA relief in respect of capital gain or income from other sources are required to provide details such as rate as per treaty, rate of income tax,
section of Income Tax Act and applicable rate.
Every assessee is required to mention the date of transfer of original capital asset to claim exemption under section 54, 54B, 54EC, 54EE, 54F, 54GB and 115F of the Act.

6. The new ITR Forms require separate reporting of both profit and loss (and not on net basis) in Schedule OI, Schedule BP (Computation of income from business or profes-
sion) and Schedule ICDS.
A new column has been introduced to report disallowances in case of non-deduction or non-deposited of tax income from other sources
Separate disclosure is required for remission or cessation of trading liability, taxable under section 59 of the Act, in Schedule Income from Other Sources.
In verification column, it is required to be mentioned that under what capacity return is filed.
An individual or an HUF, who is a partner in a firm, shall be required to file his ITR in Form ITR 3 only
All returns are to filed electronically (except the taxpayer who is filing ITR-1 or ITR-4) can of head with paper return if an Individual of the age of 80 years or more at any time
during the previous year; or an individual of HUF whose income does not exceed five lakh rupees and who has not claimed any refund in the Return of Income.
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7. Key changes in ITR Form 7 – applicable
for Charitable/ Religious Trusts, etc.
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Declaration required by Political Parties to confirm if cash donations are received
[Section 13A] – new ITR 7 requires the political parties to provide a declaration by
selecting the ‘Yes’ or ‘No’ check-box to confirm whether it has received any cash
donation in excess of Rs. 2,000
Charitable or religious trusts shall be required to disclose following additional
information in order to claim exemption under section 11 of the Act:
1) Aggregate annual receipts of the projects/institutions run by the trust.
2) Date of registration or approval granted to the trust.
3) Amount utilized during the year for the stated objects out of surplus sum
accumulated during an earlier year.
A trust will be required to furnish the following details if there is any change in its
stated objects [Section 12A] –
1) Date of change in objects
2) Whether application for fresh registration has been made within stipulated
time period?
3) Whether fresh registration has been granted?
4) Date of such fresh registration.

8. Section 115BBDA provides for levy of additional tax on dividend income received from domestic companies, if it exceeds Rs. 10 lakhs in aggregate. The scope of Section
115BBDA was extended via Finance Act, 2017 to include all resident taxpayers within its purview except a domestic company, fund or institution as referred to in Section
10(23) and a trust registered u/s 12A or 12AA of the Act.
Accordingly, necessary changes have been incorporated in Form ITR 7 and such dividends in excess of Rs. 10 Lakhs are to be disclosed in Schedule OS (Income from
other sources) and Schedule SI (Income chargeable to tax at special rate).
Pursuant to insertion of Explanation 2 in Section 11, all corpus donations made by a trust to another registered trust shall now be disallowed and will be added back to the
taxable income of the donor trust.
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9. CONTACT US
U. S. Gandhi & Co.
114, Sundervilla, 19, S.V.Road, Santacruz (West),
Mumbai-400054, Maharashtra, India.
www.usgandhigroup.com
ENGAGEMENT LEADER
Kunal Gandhi
kunal.gandhi@usgandhigroup.com
+91-22-26601159
+91-9821458072
PRACTICE HEAD
Uday S Gandhi
usg@usgandhigroup.com
+91-22-26601159
+91-9821025835