Key Changes in ITR forms for Financial Year 2019-20

1) The new forms require a separate table to disclose tax saving investment made during 1^st April 2020 to 30^th June 2020 for availing them in FY 2019-20. Deductions under Chapter-VI of Income Tax Act which includes Section 80C (LIC, PPF, etc), 80D (Mediclaim) and 80G (donations) will now be allowed for spending till 30th June.

2) Taxpayers having taxable income as dividend from domestic companies, you are not eligible to file ITR-1 form

3) Those with joint ownership of a house property cannot file ITR-1 or ITR-4

4) Taxpayers need to answer the following questions related to deposits in current accounts, foreign travel and electricity bills in all the ITR forms

a) “Have you deposited an amount or aggregate of amounts exceeding Rs. 1 Crore in one or more current account during the previous year?”

b) “Have you incurred expenditure of an amount or aggregate of amount exceeding Rs. 2 lakhs for travel to a foreign country for yourself or for any other person?”

c) “Have you incurred expenditure of amount or aggregate of amount exceeding Rs. 1 lakh on consumption of electricity during the previous year?”

5) One needs to disclose the Passport number if held by the taxpayer. This is to be furnished both in ITR 1-Sahaj and ITR 4-Sugam. Hopefully, it will be made mandatory in other ITR Forms as and when they are notified.

6) Furnishing of PAN/Aadhaar No. of tenant is mandatory, if tax is deducted under section 194-IB. and Furnishing of TAN of tenant is mandatory, if tax is deducted under section 194-I. Under Section 194I a person (other than Individuals and Hindu Undivided Family) who is paying rent is liable for Tax deduction at source. The tax can be deducted at source when the total amount of rent to be received or paid in a particular financial year is more than Rs. 2,40,000.

As per Section 194-IB of the Income Tax Act, 1961, the tenant is required to deduct TDS, if the following conditions are satisfied –

• The tenant is either an Individual or HUF whose aggregate turnover / total sales / gross receipts from the business or profession doesn’t exceed the monetary limit specified under section 44AB clause (a) or (b).

In other words, the tenant, being an individual or HUF, is not liable to get its accounts audited.

• The tenant is paying to a ‘resident’ any income by way of rent. Payment to non-resident is not covered under section 194-IB.
• The payment of rent exceeds INR 50,000 per month or part of a month during the previous year.

If you have rented out a property, then you will have to provide name and Aadhaar or PAN details of your tenant, if available.

7) In ITR-4, PAN number is made optional if Aadhar number is provided. In section 44AD, one new clause added as the electronic mode in addition to electronic clearance and reduced the presumptive income from 8% to 6%.

8) In section 44AE for presumptive income from goods carriages, the celling of maximum row is removed and a new validation “Number of vehicles should not exceed 10 vehicles at any time during the year” is added.

9) Details of Government Employees in ITR Form 1. In ITR Form 1 government employees have been bifurcated in State, Central Government and a new type as “NA” added to the list.

10) In ITR-4, PAN number is made optional if Aadhar number is provided. In section 44AD, one new clause added as the electronic mode in addition to electronic clearance and reduced the presumptive income from 8% to 6%.

11) In Form ITR-6 for companies, provides a new drop-down utility to opt for concessional tax regime of 22% offered to corporates or new companies, under section 115BAA or 115BAB

12) The new ITR Forms 3, 5 and 6 seek details pertaining to assessee’s choice of paying additional income tax in case of non-repatriation of primary adjustment within the prescribed time limit.

13) Details of Notice / Order DIN Number and date to be provided by Taxpayers who has replied or received notice in Section, including Date of such Notice or Order

The Due dates for Filing of all ITRs for 2019-20 is extended from 31 July 2020 to November 30, 2020 due to the lockdown and providing enough time for taxpayers to compile data.

Thanks

CA Ankit Gupta

+91-9670420619