To make tax compliance more effective, the income tax department has introduced new forms to declare all assets you possess for the Assessment Year 2019-20 or Financial Year 2018-19.
Here’s all you need to know about the new ITR forms.
Changes in ITR 1
You can use ITR-1 only if your salary income is up to Rs. 50 lakh, you have one house property and have other income such as interest income (from bank deposits, tax returns, etc.). You will now be required to furnish a break-up of your salary while also declaring the value of perquisites provided by your employer and profits in lieu of your salary. You will also be required to give details of allowances like House Rent Allowances (HRA) that are tax exempted.
This form also enables you to claim a standard deduction of Rs. 40,000 and entertainment allowance. Besides, with this, you would also be required to specify if the property you are holding is self-occupied, let-out or deemed to be let-out. You also need to specify the source of other income unlike earlier when only the income from other sources was to be mentioned.
Plus, you will also have to furnish details of capital gains from the sale of any immovable property in the relevant FY. This would include the name of the buyer, PAN, percentage of shares sold and the sale price.
Changes in ITR 2
This form is applicable for individuals and Hindu Undivided Families (HUF) who don’t have income from profits or gains from business or profession. As a taxpayer, you will have to provide the status of your residency. For the relevant financial year, a taxpayer now has to mention whether his/her status was that of a resident, resident not ordinarily resident (RNOR) or non-resident (NR). Residents are those who have been in India for 182 days or more in the relevant FY. The jurisdiction of residence has to be provided in case of non-residents.
In case you hold the position of a director in any company in the FY, you will have to give details like the name of the company, your PAN and Director Identification Number (DIN). Details of investments done in unlisted equity shares should be provided in the ITR form too. You will have to provide the company’s name in which you hold the shares, acquisition cost, purchase date, the face value of the share and purchase price. In case you have donated money for charity and claimed tax deduction under section 80G, you’ll need to specify whether the contribution was made by cash or other modes.
Changes in ITR 4
This form is applicable for residents or ordinarily residents if you have a cumulative income of up to Rs. 50 lakh. This is for individuals who have opted for presumptive income from business and income. You will have to give info such as your registration number, whether the goods are owned/hired/leased and the tonnage capacity.