The CBDT has notified new ITR forms vide notification no. 32/2019 dt. 1st April 2019.
The New IT return forms notified vide abovementioned notification has been made applicable for the FY 2018-19 and new changes/additional information required will not only bring more transparency but also help in automatically validating or cross-checking the income and other details that the tax authorities may have from other sources.
The details regarding each form are as under:
1. ITR 1 (SAHAJ): For individuals being a resident (other than not ordinarily resident) having total income up to Rs.50 lakh, having Income from Salaries, one house property, other sources (Interest, etc.), and agricultural income up to Rs.5 thousand]
NOTE: Not for an individual who is either Director in a company or has invested in unlisted equity shares.
2. ITR 2: For Individuals and HUFs not having income from profits and gains of business or profession
3. ITR 3: For individuals and HUFs having income from profits and gains of business or Profession.
4. ITR 4 (SUGAM): For Individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs.50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE]
NOTE: Not for an individual who is either Director in a company or has invested in unlisted equity shares]
5. ITR 5: For persons other than- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7
6. ITR 6: For Companies other than companies claiming exemption under section 11
7. ITR 7: For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D).
Major Changes/Additional details to be furnished in new ITR Forms
1. ITR Form – 1 can be filed only by the following residents & ordinary resident (ROR) persons i.e.
(a) Whose total income does not exceed Rs. 50 lakhs;
(b) Who is not a director in a company;
(c) Who is not holding any unlisted equity shares;
(d) Who is not assessable in respect of other person’s income on which tax has not been withheld.
(e) Who has not claimed any deduction against “income from other sources” (other than family pension
2. The assessee who is filing ITR 2 or ITR 3 has to provide a history of their stay in India to determine residential status for income tax purposes.
3. 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.
4. 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.
5. Assessee having business or profession with GST registration are now needed to furnish GST Revenue, GSTIN (GST Number). This disclosure is extended to ITR Forms from 3-6.
6. Salaried Employee: 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.
7. Foreign Assets: Column A, which deals with the details of the foreign bank account in ITR Form 2 & 3, has been reframed to include the details of foreign depository account, foreign custodian accounts, foreign equity and debt interest, foreign cash value insurance contract or annuity contract, etc.
8. 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.
9. Only very senior citizen (i.e. above 80 years) filling ITR 1 and ITR 4 will be entitled to file physical returns and all other Individuals will have to file their ITR electronically.
(The author is a Chartered Accountant in practice and can be reached at firstname.lastname@example.org)