Central Board of Direct Taxes has notified the new ITR Forms AY 2017-18 (for FY 2016-17). In order to make Income Tax Return filing easy, quite a few changes in ITR Forms have been implemented.
The new ITR forms in PDF format have been made available, while the excel utilities (or) Java Utilities for AY 2017-18 will soon be made available on incometaxindia e-filing website.
What is AY & FY?
Financial year (FY) is the year in which you have earned the income. If you are filing a return this year, the financial year will be 2016-17.
For example, if you have had an income between 1st April 2016 and 31 March 2017, then 2016-17 will be referred to as FY. Assessment Year (AY) is the year in which you file returns i.e., 2017-18. The last date to file returns for the financial year 2016-2017 is July 31st 2017 (as of now).
Income Tax Slabs & Rates for FY 2016-17 (AY 2017-18)
The below table gives you clear idea about Income tax slabs / rates for all Tax payer categories. (For general category, Senior Citizens & Very Senior Citizens).
Income Tax Returns Filing & New ITR Forms AY 2017-18 | Which ITR Form should you file?
Below are the main details about new ITR forms. You can download the ITR Forms which are in PDF format.
- The number of ITR Forms have been reduced from the existing nine to seven forms.
- Kindly note that it is now mandatory to quote your Aadhar number / Aadhar Enrollment ID and also disclose Cash deposits of more than Rs 2 lakh made during demonetisation period (between 9-Nov-2016 & 30-Dec-2016). (Quoting of Aadhaar number in ITR forms is not mandatory for NRIs / individuals who are not citizens of India / who are above 80 years of age / who are residing in States of Jammu & Kashmir, Meghalaya & Assam.)
- The existing ITR Forms ITR-2, ITR-2A and ITR-3 have been rationalized and a single ITR-2 has been notified in place of these three forms.
- The existing ITR 4 has been re-numbered as ITR 3.
- ITR 4S (Sugam) is now ITR 4 (Sugam).
- All ITR forms have to be filed electronically. The only exception being ; in the case of individuals of the age of 80 years or more, whose income does not exceed Rs 5 lakh and who has not claimed any refund in the return of income, have an option to file return in paper form.
New ITR 1 (Sahaj) Form For Assessment Year 2017-18 :
- The existing multiple pages ITR 1 form has now been simplified into a single page ITR Form.
- ITR 1 Form (Sahaj) can be filed by an individual having income of up to Rs 50 lakh from salary, one house property and interest income.
- In this ITR form, important tax deductions like Section 80C, 80D, 80G & 80TTA have only been provided. For other tax deductions, you can just mention the section and amount details.
- If you have LTCG of Rs 2.5 Lakh or more, It is mandatory to e-file tax returns, even if your total taxable income may be below Rs 2.5 lakh.
- A separate provision has been provided to disclose Long Term Capital Gains (LTCG) as Exempt income under section 10 (38).
- A separate provision has been provided to disclose Dividend income received from an Indian company as Exempt income under section 10 (34).
- Click here to download new simplified ITR 1 Form for AY 2017-18.
New ITR 2 Form for Assessment year 2017-18 :
- ITR2 form can be filed by an Individual or Hindu Undivided Family (HUF). This form can be used if you have;
- Salary or Pension Income
- Income under the head ‘Capital Gains’
- Income from multiple houses
- No business / professional income under any proprietorship
- An asset in foreign country or income from a source outside India
- Agricultural income of more than Rs 5,000
- Income from lottery or horse racing
- If your income is more than Rs 50 Lakh, ITR 2 has a Schedule AL requiring assessees to declare their assets and liabilities at the end of the fiscal.
- Click here to download new ITR 2 Form.
New ITR 3 for AY 2017-18 Income tax filing
- The existing ITR 4 is now re-numbered as ITR 3 form.
- New ITR 3 form is for individuals and HUFs having income from a proprietary business or profession (or having income as a partner in a Partnership firm).
- This ITR covers all kind of businesses and professions irrespective of any income limit. Assesse can also report his income from salary, multiple house properties, lottery winnings, capital gains, speculative income i.e. horse race in ITR3 together with the Business Income.
- Click here to download new ITR 3 Form.
New ITR 4S (Sugam) form for AY 2017-18
- This form can be used by individuals who have;
- Presumptive income from Business or Profession.
- No Capital Gains
- Agricultural Income which is less than Rs 5k
- No asset in foreign country or no income from a source outside India
- Income from one house property
- Income from other sources
- Click here to download new ITR 4S form.
Continue reading :
- List of Income Tax Deductions For FY 2016-17 / AY 2017-18
- List of Income Tax Exemptions for FY 2017-18 / AY 2018-19
(Image courtesy of Stuart Miles at FreeDigitalPhotos.net) ( (Post first published on 31-March-2017) (This post will be updated with more information after going through the latest ITR forms in detail..)
Self Occupied Property (SOP) & Tax implications
How to eVerify Income Tax Returns (ITR) of Previous Assessment Years?
Misconceptions on TDS (Tax Deducted at Source)
Tax Saving investment options u/s 80c : In whose name can they be invested?
I purchase equity mutual fund rupees 36000/- year 2009. Sell 90000/- , year 2016 December. Is capital gain 54000/- and is it show 10(38) in itr 1 ?
Dear Raja ..Kindly refer to our Facebook chat.
My ppf interest income 10662/- where I show it ITR 1
Dear Sreekanth,
I was impressed with your knowledge and the way you guide people. Please tell me about Schedule AL in ITR-2 FY 15-16. Are we supposed to reflect only assets acquired during the FY or total assets as on date. I mean for example I am dealing in MFs and invest about Rs 12 Lakhs per annum. As on todat I have a portfolio of about Rs 40 Lakhs. So what I am to show in Shares and securities? Rs 40 Lakhs or Rs 12 Lakhs invested in the FY?
Please revert
Regards
Nand Shouche
Dear Nand,
Declaration of A&L is mandatory for the tax assessees whose income is above Rs 50 Lakh.
I dont think declaration of investments in Mutual funds have to be made in ITR – 2 (If it all it needs to be done, it is on cost basis).
At present, details of assets and liabilities to be provided under “Schedule AL” is more exhaustive for those using ITR 3 an ITR 4.
Read : Which ITR form to file FY 2015-16?
Thanks Shreekath
for your valuable input
I am a salaried person with no other income.
i invest in shares and mutual funds but have not sold any shares or mutual funds in the FY 16-17.
i have got only dividends from my shares as additional income.
which ITR Form do i fill in?
ITR 1 or ITR 2 .
Thanks
Dear VIVEK..You can file ITR 1 form and can disclose the dividend income in ‘Exempt income’ column (just for reporting purposes).
I am house wife. My husband do trading in stock market behalf of me in my name It has long term and short term profit. and also Loss in f&o options section. Which itr form I have to submit ? Where I can show my f&o loss. My income from all sources not exceeds 2 lacs .
Dear Mandakini,
You may file ITR 3 form.
Kindly take help of a CA and get this done.
Hi Sreekanth,
Nice article. 🙂
I file ITR every year by myself only. I was working in India till November 2016 and in December 2016 I moved out of India for work. I received my form 16 from employer starting April 2016-November 2016.
1.) I wanted to understand do I need to declare (in AY 2017-18) that I moved out of India and earning there. If yes, then what are the necessary steps I have to take care.
2.) Another thing as my earning is Zero in FY 2017-18 then is it necessary to file ITR of AY 2018-19 because I won’t be having Form 16 or anything like that. ?
Thanks.
Mittal.
Dear Mittal,
Suggest you to go through below two articles, can be useful to you;
Residential status & ITR filing
Do I need to file ITR?
Similar Query on our Forum Section..
In assessment year 2016-2017 I have business Income and capital gain income which itr form I am fillup.
Dear SHAHNAWAZ,
Are you sure it is for AY 2016-17? If so, you can file ITR 4 form.
Kindly read : Which ITR form to file for FY 2015-16 / AY 2016-17?
Dr sir, i m a teacher and also a farmer. plz suggest me itr form in which i can show my professional income and exempt agriculture income for AY 17-18. Note:- agriculture income is more than 5000.
Dear GULSHAN,
If you have salary income + Agri income, you may consider ITR 2 form.
Dear Sreekanth Reddy Sir,
I work in a private company . Hence Till FY2015-16 I used to e-filled ITR-1………………..
I have also done MF SIPs for 7 different AMCs 8 schemes for period 2009-2016 . But on January 2017 I have sold out my all 8 mutual funds schemes in one shot.
Now my question is that –
(1) How to calculate SIP gains for each monthly payments , as all redeemed in one go ?
(2) Please share me the excel sheet , where I can get the capital gains amount (short & long term as per sip dates)
(3) while e-filing at https://incometaxindiaefiling.gov.in , under the section ‘ PREPARE & SUBMIT ONLINE ITR’ why only ITR-1 and ITR-4 are able to select . Why ITR-2 , ITR-3 is not there ?
( But in case of offline fill-up , all ITS are there as XML file)
Kindly support with your answer specifically as per my queries , as general as could leads to confusion.
Dear Sanz,
1 & 2 – You can request for Capital gain statement and check out the applicability of taxes.
Kindly read :
How to get capital gain statement?
MF Taxation rules.
3 – Only those forms can be used to prepare tax liability online and file online. For other forms, one needs to download excel/java utilities, prepare the tax return and then upload them in efiling website.
Thank You Sir………….
Hi Srikanth,
I have non-taxable capital gains and professional income, I would like to utilize presumptive taxation scheme. Can you please let me know if I can make use of ITR-4, to include both the incomes? If not, how do I file return while taking presumptive taxation scheme. Please let me know.
Thanks,
Tom
Dear Tom,
In case, exempt income (non-taxable capital gains) is more than Rs 5k, I dont think one can use ITR 4 (Sugam) form.
Thanks Srikanth … Can you please let me know what is the correct ITR in my case? Also, do I need to show the bills/accounts for my professional income. I will be glad if you can give me some pointers on this.
Dear Tom ..ITR 3 can be considered. Kindly do take advice from a CA too.
Thanks Srikanth
In ITR-2, for S.T C.LOSS on redemption of DEBT MF & Sale of Tax Free Bonds; where EXACTLY & how do I have to fill this un ITR-2? Will this S.T C.LOSS be adjusted automatically against any STCG for Equity shares?
Dear SK..Kindly consult a CA.
Read : Set-off of loses on capital assets.
Hello sir,
I am a salaried person, i invest part of my salary on mutual fund,NSC,LIC products. would you please guide which form should i fill?
From your description i think i should fill ITR1 or ITR2. kindly correct if i am wrong.
Dear RANJEET ..It depends on your sources of income. If you have only salary income then ITR 1 can be used.
Itr form 3 opening date because ई want file ay 2017 2018 return
I wanna 2017 2018 file the return but form 3 is not update please. Inform me when I filing return. When opening date
Dear Dharmendra ..ITR 3 execel/Java utility is available on e-Filing portal. You may fill the form and upload the return online (XML file).
Hi Sreekanth,
Understand that ITR 3 returns filing for AY 2017-18 is still not open even till this date . Could you please confirm the opening date again please.
Dear MP..ITR 3 excel utility / Java utility is available. You may download them, calculate your tax liability, generate XML form and upload the same online on e-Filing portal.
Thanks Reddy for the information.
I got around 3ooo rs/- as short term capital gains from liquid funds redemption. I fall in lowest tax slab. Do I need to show these in my ITR and file ITR-4 or ignore this amount and proceed with ITR-1. (No TDS on this STCG).
I also received 1.07 lakhs as ULIP payout eligible under section 10(10D). This needs to be declared in exempt income right?
Dear Raghuma ..You may have to file ITR 2 (if salaried) / ITR 4 form (if business/professional).
Yes, you can declare the insurance amount under Exempt Income section.
The efiling portal shows option for itr 1 or 4 only. How to proceed? I’m salaried category
Dear Raghuma,
You can download ITR 2 Excel Utility and fill the necessary details and then Upload your Return online.
Dear Sreekanth,
Till AY2016-17, I have used ITR-1. From Jan2017, in addition to salary, I get pension (less than 1 lakh per annum) from LIC Jeevan Suraksha Policy. LIC have not deducted any TDS in FY2016-17. I have paid adv tax. (1)Can I continue to use ITR-1. (2) If so, ITR-1 form says ‘ensure to fill TDS1’. There is no TDS1 for pension portion.
K.Gopal
Dear Gopal ..You may file ITR 1 only..
Kindly note that it is now mandatory to quote your Aadhar number / Aadhar Enrollment ID and also disclose Cash deposits of more than Rs 2 lakh made during demonetisation period ( HOW IT IS SHOW SIR IN ITR
Dear RAJESH ..For example, in ITR 1 Form, under Part A General information, you can provide Aadhar number / Enrollment ID.
Under Part E, you can disclose the information related to Cash deposits.
HI SIR
IF ANY PARTNER HAVE AGRICULTURE INCOME MORE THAN 5K THEN WHICH ITR FORM CAN BE FILLED
Dear shakir ..ITR 3 can be considered..
Some things yet to be clearified.Which form firm can use to file preservative income and how to claim salary and interest paid to partner.Some says that this is not allowed if so why whereas in trucks income it is allowed.
Dear Ahuja ..I believe that ITR 3 can be considered.
Dear Sree, another great article from you!
I had Google Adsense income, eBay seller income, salary income, FD and NSC income in FY 2016-17. Which form should I use in AY 2017-18?
Dear Raju,
Ideally income from adsense/affiliate has to be declared as ‘income from business/profession’. So, you may consider filing ITR 3 or ITR 4.
Dear Sree, I’ve declared my ebay+FD+Adsense income under “income from other sources” using ITR-1 in FY 2015-16, as they are not my primary income. Should I re-submit the ITR for that previous FY? I didn’t hide my income, just declared using ITR-1 sahaj.
Dear Raju ..If they got processed then no issues.
Hi Shreekanth,
Thanks for the article.
I have a query related to Exempt income.
As per my understanding, we can include following under exempt income:
– Mutual funds dividends
– Interest income from tax free bonds
– PPF Interest (not sure if this should be part of exempt income. plz confirm)
– SSY interest
– Interest income from Bank FD’s
– Income from sale of Mutual fund units (after 1 year)
Please let me know if we can include any other income here.
Thanks
My mistake in the query. income from fd’s should not be part of this list. Please let me know about the rest. Specifically about PPF/SSY, whether we should include there interest income or not. Also, is there any cap on the exempt income amount that can be show in sahaj form1. Thanks.
Dear Saurabh,
Yes, we can include interest income on PPF/SSY too.
As far as I know, there is no cap as such.
Gifts can also be included under Exempt income section.
Read : Gifts & tax implications.
Hi Shrikanth,
I have income from salary and LTCG from sale of equity mutual fund on which there should be no tax because they were held more than 1 year. can I file ITR1 itself as noe it has provision for declcaring exempt LTCG or I need to file ITR2?
Regards,
Ashu
Dear Ashu.. You can file ITR 1 Sahaj form.
Hi Sreekant,
If a person is earning through coaching at home but not maintained proper records. Which form he should use to filling ITR.
Dear Vishal,
ITR 4S can be considered..
Hi Shrikanth,
I have taxable capital gains. Also, I run a profession with presumptive Income.
Which ITR should I file.
Regards,
Sandeep
Dear Sandeep..You can file your return through ITR 3 form.
Hi Sreekanth,
Thanks for the prompt reply.
I have seen the ITR3. There is no column about presumptive income or any place where I can mention that the business income calculated by me is on presumptive basis.
Regards,
Sandeep
Dear Sandeep,
As you have Capital gains too, you may to file in ITR 3 only.
hi
I have salary income +interest income+exempt income(my PPF)+exempt income of minor child(her PPF&SSA).I have no tax for FY 2016-2017. Which ITR should I file.
ITR 1
IS APPLICABLE
Hi Srikanth,
along with salary, I have income from shares in intra day and short term capital gains. which ITR form I have to use.
Please advise.
Thanks,
Prathap.
ITR 2