Key Changes in ITR Forms For AY 2019-2020

Key Changes 1

CBDT has notified new ITR Forms vide Notification No. 32/2019 dated 1st April, 2019. The details regarding each form are as follows.

ITR – 1 (SAHAJ):

This form is applicable for Resident or Ordinarily Resident having:

  • Total Income upto Rs. 50 lakhs.
  • Income from Salaries.
  • Income from one House Property.
  • Other sources Income.
  • Agricultural Income upto Rs. 5000.

ITR Form – 2:

  • This form is applicable for individuals and HUFs not having Income from profits and gains of business or profession.

ITR Form – 3:

  • This form is applicable for individuals and HUFs having Income from profits and gains of business or profession.

ITR Form – 4:

  • This form is applicable for Resident individuals, HUFs and Firms (other than LLPs) having the Income upto Rs. 50 lakhs and who has opted for the computation of profits under Section 44AD, 44ADA and 44AE.

ITR Form – 5:

  • This form is applicable for the person other than individual, HUF, Company and the person filing the form ITR-7.

ITR Form – 6:

  • This form is applicable for the Companies other than the companies claiming exemption under Section 11.

ITR Form – 7:

  • This form is applicable for the person including companies who are required to furnish the return under sections 139 (4A) or 139 (4B) or 139 (4C) or 139 (4D).

Key Changes in New ITR Forms:

  • If an individual wants to claim the expenses in respect of income then he cannot use ITR-1. This restriction however would not apply in case of the income of family pension where standard deduction up to 1/3 of the pension subject to a maximum of Rs. 15,000 is allowed.
  • An individual who is a director in any company or has invested in unlisted equity shares in the previous year, he cannot use ITR-1 or ITR-4.
  • In ITR Form 2 & 3, additional details in case of agricultural income are required to be reported, such as the name of the district with pin code, measurement of agricultural land, whether owned/leased, whether irrigated or rain-fed under the “exempt income schedule”.
  • In addition, reporting of income not chargeable to tax under the tax treaty is required to be disclosed in this schedule.
  • Exempt allowance to be shown separately along with the bifurcation for deductions claimed u/s 16 of the IT Act, 1961. TAN of employer mandatory required to be reported in ITR 2 and ITR 3.
  • The person who is filing ITR 2 or ITR 3 has to provide a period of their stay in India to determine residential status for income tax purposes.
  • Person having business or profession with GST registration are now required to furnish GST Revenue, GSTIN (GST Number). This disclosure is required in ITR Forms from 3-6.
  • In case rental income from house property on which tax has been deducted, the details of TAN/PAN of the tenant for claiming the credit for the tax deducted by the tenant has to be given.
  • In case any tax has been deducted by the buyer in respect of the sale of any immovable property then have to mandatorily furnish the details of the PAN of the buyer for claiming the TDS credit.
  • Information has to be provided by the assesse regarding the holding of unlisted equity shares at any time during the year company wise like the Name & PAN of the Company, Opening Balance – No. of shares and Cost of acquisition, shares acquired during the year – No. of shares, date of purchase, Issue price, purchase price, shares transferred during the year – No. of shares and Sale Consideration, Closing Balance – No. of shares and Cost acquisition. The above information will be cross checked with the data provided by the companies in ITR 2, 3, 5 & 7.
  • Details of directorship in company at any time during the financial year has to be furnished such as DIN, Name and PAN of the Company whether its shares are listed or unlisted in ITR-2 & ITR-3. This will be cross-verified with ROC.
  • Now only the very senior citizen individual (above the age of 80 years) using ITR -1 or ITR-4 is allowed to file the physical returns and all other individuals have to file their ITR electronically.

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