InvestorQ : What are the new updates in ITR forms for AY2019-20?
Shreya Mashelkar made post

What are the new updates in ITR forms for AY2019-20?

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Roshni Hegde answered.
1 year ago

All taxpayers there! need to get the update on the notification by the income-tax department. It is regarding the new income-tax return (ITR) forms for assessment year (AY) 2019-20. It's no more wonder as every year department updates ITR forms. The number of the forms still remains the same i.e., 7.
Except for ITR-1 and ITR-4 for AY 2019-20 that are already available on the income- tax department’s e-filing portal, other ITR forms will be available for the user shortly.

Let me lost down the new 10 heads under which changes have been made for AY2018-19.

Applicability of Forms-Individuals with total income up to ₹50 lakh (sources such as salary, one house property, other sources (interest income) and agricultural income up to ₹5,000) - ITR-1.
Individuals (Hindu Undivided Families and firms -other than limited liability partnerships) with total income up to ₹50 lakh- ITR-4.
Not eligible: individuals or HUFs who are not resident and ordinarily residents, non-resident partnership firms, directors of companies or persons having the investment in unlisted equity shares or having more than one house property

Contact details-Individuals filing returns through ITR-1 form are expected to mention the Indian address and mobile number.

Salary components-Now individuals will be asked to compulsory disclose other components of salary. Also, if the individual is a salaried employee then he/she have to disclose the value of perquisites, profit in lieu of salary, exempt allowances and also deductions for entertainment allowance, professional tax and standard deduction separately. All these data will be functioned to sync in details mentioned in Form 16.

House Income- If you an individual with more than one self-occupied house, then the recent amendment makes it one as self-occupied. And the rest would be ''deemed to be let out". As these properties are considered as let out, you need to pay tax on the potential rent of such property- ITR-1 and ITR-4. In case TDS is deducted by the tenant, mention the PAN (Permanent Account Number) of the tenant in ITR-2.

Capital gains- If you as an individual is looking out to buy a property of worth over ₹50 lakh, then the new income-tax rules get applicable to you. according to it, a property buyer has to deduct TDS at the rate of 1% of the property value.

Note: Long-term capital gains on listed equity shares and equity-oriented funds are taxable from 1 April 2018.

Other income sources- Are you earning interest income that comes under the income-tax head (other sources)? Then you need to check this income tax rule. Individuals will have to provide separate disclosures for interest income from a bank savings account, fixed deposits, and income-tax refund, in the nature of pass-through income or others.

Residential status- New rule to all individuals who travel out of the country frequently! Now mere a self-declaration on the residential status of an individual isn't sufficient. You need to mention the number of days spent in and outside India. Your total earning will be charged, if you as an individual is under a tax resident and if he or she is present in India for at least 182 days or more in an FY, or 60 days or more in an FY and 365 days or more during the preceding four FYs.

Details for NRIs- If you fall under the definition of resident Indians (NRIs) then you need to file your returns in India, provided the income is earned in India. The new ITR forms include blanks to fill data on country of residence, taxpayers’ identification number, the number of days of stay in India in case of an Indian citizen or a person of Indian origin (PIO).

Foreign assets- Individuals holding foreign bank accounts and the foreign depository accounts need to report their details through ITR forms. The required details to mention in tax return forms are foreign custodial accounts, foreign equity and debt held and foreign cash value insurance contract details.

Other changes- Individuals who donate to charitable institutions will now mandatorily have to disclose the amount of such donations. These donations include the mode in cash and other modes separately. Senior citizens under Section 80TTB, earning the interest income and claiming a deduction over it are required to give a separate detail of the same.

Individual earning agriculture income above Rs5 lakh, need to provide details - district name with a PIN code, measurement of the land, whether the land is owned or leased and whether it is irrigated or rain-fed and so on.

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1 year ago

The Central Board of Direct Taxes (CBDT) notified new income tax return (ITR) forms for the last financial year 2018-19. These new forms ask for more information from the tax payer vis-à-vis the previous year.

According to media reports, in the new ITR forms, those filing ITR-3 and ITR-6 (companies) will have to disclose information regarding turnover/gross receipts reported for Goods and Services Tax (GST). Last year, this was applicable only for those assessees filing ITR-4.

A few other changes include:

- For landlords: In order to avail TDS relief, landlords will have to quote the PAN card of the tenant. They will also have to list the period of stay of the tenant. Please note, this will apply to individuals who earn from rent and file ITR-2.

- Those getting money in the form of donation will have to now give details of the name of donors, their address and PAN.

- Taxpayers having an agricultural income need to file ITR-2 with details of the land, the name of the district when he owns the land and the PIN.

- The tax department has stopped investors and company directors from filing ITR with Sahaj and Sugam forms.

- In ITR-6, taxpayers will have to share details of money in foreign accounts, equities and bonds.