ITR filing: What is Sahaj, details of new changes and how will it benefit you, 10 points

The Central Board of Direct Taxes on Thursday notified new Income Tax Return (ITR) forms for the assessment year 2018-19. 
With the new changes have been introduced, it is mandatory for salaried class assessees to provide their salary breakup and businessmen their GST number and turnover.

The policy-making body of the tax department said some fields have been "rationalised" in the latest forms and that there is no change in the manner of filing the ITRs as compared to last year.

However, the last date to filled ITR for 2017-18 had been crossed. And for this assessment year, the last date is July 31. 

Below we have listed the details regarding the new changes and a step wise guide to file ITR. 

1. As mentioned above, for 2018-19, the new income tax return forms (ITR forms) seek elaborated details from individual taxpayers about their salary structure and income from property while making it mandatory for small businesses to report their goods and services tax identification number (GSTIN) and turnover reported under GST.

The new ITR form seeks an assessees salary details in separate fields and in a breakup format such as allowances that are not exempt, value of perquisites, profit in lieu of salary and deductions claimed under section 16. These details are provided in the Form 16 of a salaried employee and a senior tax official said that these are now meant to be mentioned in the ITR for clarity of deductions.

2. What is Sahaj or ITR-1?
ITR-1 or Sahaj is a basic form that has to be filled by the salaried class. 

The CBDT said the ITR-1 can be filed by an individual who "is resident other than not ordinarily resident and having income of up to Rs 50 lakh and who is receiving income from salary, one house property or other interest income".

3. The ITR-2 has "also been rationalised" for individuals and HUFs (Hindu Undivided Families) having income under any head other than business or profession.

4. The individuals and HUFs having income under the head business or profession shall file either ITR-3 or ITR-4 in presumptive income cases. Under the ITR-4, assessees who have presumptive income from business and profession will have to furnish their GST registration number and its turnover.

5. Relief to NRIs
The forms give non-resident Indians (NRIs) some relief. They can now provide details of their foreign bank accounts to claim credit or refunds. Earlier, they could only provide details of bank accounts held in India.

However, it is to be noted that from new assesment year, NRIs have to filled ITR-2, which requires more detailed than Sahaj-that has now been restricted to residents only. 

6. The CBDT said that individual taxpayers of 80 years or more at any time during the previous year or an individual or HUF whose income does not exceed Rs 5 lakh and who has not claimed any refund, can file ITR in the paper form, using the ITR-1 or ITR-4. 

7. Among the procedural changes is doing away with the requirement of disclosing cash deposits made immediately after demonetisation. Further, those paying tax under the government’s presumptive taxation scheme will have to provide their GSTIN and details of their turnover reported under GST, as the government seeks to check tax evasion among these entities by linking their direct and indirect tax data.

8. “GSTIN number now has to be mentioned in ITR-4 filled by businesses and professionals claiming presumptive income. They also have to quote gross receipts as per GST returns. It appears that the department intends to use this information to link the direct and indirect taxes paid by these businesses,” said Archit Gupta, chief executive officer of ClearTax, a tax and compliance software provider.

9. Partners in firms will now have to file ITR-3 instead of ITR-2, Gupta added.

10. Some of the benefits of filing ITR are that it helps the bank loan documentation process easier, ITR receipts can be used as address proof, it also avoid penalties from the tax department. 

In case of applying for a credit card, ITR documents can make the process hassle free. It also allows process of Visa application.