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The Income Tax Department has brought about certain changes in select ITR forms meant to be used for assessment year 2019-20. Individuals and businesses are required to file their income tax returns for the income earned in financial year 2018-19 using these forms: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5. These forms - also known as ITR forms were notified by the Income Tax Department.





Form

Description

ITR 1

For Individuals being a Resident (other than Not Ordinarily Resident) having Total Income upto Rs.50 lakhs, having Income from Salaries, One House Property, Other Sources (Interest etc.), and Agricultural Income upto Rs.5 thousand (Not for an Individual who is either Director in a company or has invested in Unlisted Equity Shares)

ITR 2

For Individuals and HUFs not having income from profits and gains of business or profession

ITR 3

For individuals and HUFs having income from profits and gains of business or profession

ITR 4

For Individuals, HUFs and Firms (other than LLP) being a Resident having Total Income upto Rs.50 lakhs and having income from Business and Profession which is computed under sections 44AD, 44ADA or 44AE

(Not for an Individual who is either Director in a company or has invested in Unlisted Equity Shares)

ITR 5

For persons other than:- 
(i) Individual,
(ii) HUF,
(iii) Company and 
(iv) Person filing Form ITR-7


Changes in ITR Forms


Type of Change

Form Impacting

Old Form for AY 2018-19

New Form for AY 2019-20

Books of Accounts Bifurcation

(Part A-Manufacturing Account)

(Part A-Trading Account)

ITR-3,5

No such Bifurcation or disclosure before.

Where regular books of accounts are maintained, Profit and Loss A/c is bifurcated into Manufacturing, Trading and Profit and Loss A/c in ITR-3, ITR-5, ITR-6. In Manufacturing A/c details of opening inventory of raw material and work in progress, purchases, direct wages, direct expenses, factory overheads and closing stock are to be given and cost of goods produced to be transferred to Trading A/c. In Trading A/c details of Sales, purchases, direct expenses, Opening and Closing stock of finished goods etc. is to be given and gross profit to be transferred to P&L A/c. Indirect incomes and expenses to be reported in P&L A/c. This will disclose gross profit and net profit calculations. The gross profit and net profit as per books of accounts will have to be reconciled with ITR.

Details in case of sale of any immovable property

(Schedule CG)

ITR-2,3,5

No such Bifurcation or disclosure before.

In case taxpayer has sold any immovable property in the financial year, he needs to furnish the details of the buyer such as Name, PAN, Percentage share, address of the property, etc.

More detailed disclosure on foreign assets

(Schedule FA)

ITR-2,3,5

No such detailed disclosure before

This year the disclosures regarding foreign assets have increased in the ITR form. Now it also includes details of foreign depository accounts, foreign custodian accounts, equity or debt interest in a foreign entity and foreign cash value insurance contract or annuity contract.

TAN/PAN details in case of Rental Income from House Property

(Schedule HP)

ITR-1,2,3,5

No such disclosure before

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.

Long term Capital Gains on Shares/Mutual Funds

(Schedule CG)

ITR-2,3,5

No such taxability and disclosure before.

Long Term Capital gains on equities and equity based mutual funds were introduced in last financial year. The gains would be taxed at 10% in case it exceeds Rs 1 lakh. The ITR forms have been modified accordingly to mention these capital gains.

Additional disclosure of Agriculture income

(Schedule EI)

ITR-2,3,5

No such Bifurcation or disclosure before.

Taxpayers with agriculture income of more than Rs 5 lakhs, have to fill up ITR 2. ITR 2 asks for additional details such as the name of the district with pin code, measurement of agricultural land, whether owned/leased, etc. under exempt income schedule

Reporting of salary income on gross basis

(Schedule S)

ITR-1,2,3,4

The new ITR forms have changed the mechanism of reporting of salary income. Up to Assessment Year 2018-19, an individual was required to report salary amount excluding all exempt and non-exempt allowances, perquisites and profit in lieu of salary. These items were reported separately in same schedule and had no impact on calculation of net salary income.

The new ITR forms have changed this reporting mechanism, which is now in sync with the columns of Form 16 (TDS Certificate issued by the employer). Now, from Assessment Year 2019-20, an individual has to mention his gross salary and then the amount of exempt allowances, perquisites and profit in lieu of salary shall be deducted or added to arrive at the taxable figure of salary income.

Deductions Reporting

(Schedule S)

ITR-1,2,3,4

Total deduction u/s 16 to be reported.

The new ITR forms seek separate reporting of all deductions allowable under Section 16, namely:

  1. Standard deduction /s 16(ia) i.e. Rs. 40,000
  2. Entertainment allowance u/s 16(ii)
  3. Professional tax u/s 16(iii)

The disclosure will provide information in line with Form-16.
 

Disclosure for residential status

(Part A Gen)

ITR-2,3

No Such Disclosure before.

Detailed disclosure for residential status in India is to be provided by individuals in ITR-2 and ITR-3 i.e. stay in India is more than 182 days or more during the year, stay in India is 365 days or more in 4 preceding years, etc. In case of non-resident details of jurisdiction of residence and Taxpayer Identification No. to be provided along with total period of stay in India during the year and during 4 preceding years. It will be helpful in determining correct residential status and hence taxability of residents and non-residents.

Directorship Details

(Part A Gen)

ITR-2,3

No Such Disclosure before.

Details of directorship in company at any time during the financial year such as Name and PAN of the company, whether its shares are listed or unlisted and Director Identification No. (DIN) are to be furnished in ITR-2 and ITR-3. This will be cross verified with ROC.

Turnover/Gross receipts as per GST return

(Schedule GST)

ITR-3,5,6

Turnover/Gross receipts as per GST return was required in ITR-4 only

Information regarding turnover/Gross receipts as per GST return filed such as GSTIN and annual value of outward supplies, which was limited to ITR-4 only now made applicable to ITR-3, ITR-5 and ITR-6.

Donations bifurcation

(Schedule 80G)

ITR-1,2,3,4,5

No such Bifurcation or disclosure before.

Bifurcations of Donations made in cash or otherwise are to be given for claiming deduction u/s 80G. The donations in cash above Rs.2,000 will be disallowed.

Additional disclosure for income from Other Sources (Schedule OS)

ITR-1,2,4,5

No Such Disclosure before.

For income from Other Sources, the ITR Form asks for more details like income from Savings Account, from deposits (banks/post office), from income tax refunds, etc.

Deduction u/s 57

(Part B Gross Total Income)

ITR-1.4

Up to Assessment Year 2018-19, taxpayers were required to disclose the aggregate amount of income taxable under the head other sources.

However, from Assessment Year 2019-20, it is mandatory for an assessee to specify the nature of income taxable under the head income from other sources and the deductions claimed in respect of family pension in accordance with Section 57.

Additional Deduction 80TTB for Senior Citizens

(Schedule VI-A)

ITR-1,2,3,4

No such Deduction before

Section 80TTB had been introduced in FY 2018-19 and it exempts Rs 50,000 interest income for senior citizens. The same is now reflected in ITR Form.

Restriction on file of ITR-1 by some taxpayers

ITR-1

Following 2 categories of tax payers who used to file ITR 1 until last year have to file ITR 2/ other tax return form  for AY 2019-20:

  1. Individuals being a director in a company
  2. Individuals who have investment in unlisted equity shares at any time during the FY

Following 2 categories of tax payers who used to file ITR 1 until last year have to file ITR 2 for AY 2019-20:

  1. Individuals being a director in a company
  2. Individuals who have investment in unlisted equity shares at any time during the FY

The above resident individuals will now have to file the detailed form ITR-2 / other tax return form, as applicable irrespective of the amount of their total income during the year.

Manual Filing of Form Restriction

ITR-1

From A.Y. 2019-20, only persons above 80 years of age i.e. super senior citizen using ITR-1 or ITR-4 can file paper returns.

Rest all are required to file return electronically. Earlier those with income up to Rs. 5 Lacs and not seeking a refund could also file in paper form.


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