New Income Tax Return forms have been notified for FY18-19. The return forms are asking for more information from taxpayers as compared to previous years like the number of days of residency in India, holding of unlisted shares, mandatory quoting of PAN, new details required to be filled in by taxpayers.
New Details required to be filled in ITR-1
ITR-1 is applicable only for resident individuals having total income up to Rs50 lac from salary, one house property and sources of income like interest rate, etc. As per the forms notified by the CBDT, ITR-1 comes with an option of standard deduction with the maximum amount of Rs40000 while filing ITR for FY2018-2019. However, this ITR form can’t be used by those individuals who is either a director of the company or has invested in unlisted equity shares, as per notified form.
In ITR-1, if you are having a house, then you need to specify whether it is self-occupied, let out or deemed to let out. This year you need to provide details of income from other sources as compared to the previous year where you only required to provide just the income from other sources that include interest income from a bank account, fixed deposits, etc. Similar to previous years, you required to provide break up of your salary details such as salary excluding allowances, perquisites, and profit instead of salary. Also, need to provide additional details of perquisites received from the employer and profit instead of salary if any. If there are any allowances, which exempted from tax such as a certain or full amount of house-rent allowance, then that shall also mention in the ITR-1.
New Details required to be filled in ITR-2
ITR-2 applies to individuals and Hindu Undivided Families (HUFS) not having income from profits and gains of business or profession. In ITR-2 it will require you to provide details of your residency status i.e. Whether in FY 2018-2019 you are resident, resident but not ordinarily resident or non-resident individuals. You will be required to specify you were in India for 182 days or more during the previous year [section 6(1)(a)] or You were in India for 60 days or more during the previous year and have been in India for 365 days or more within the 4 preceding years [section (6)(1)(c)] [where Explanation 1 is not applicable]. If you were holding shares of an unlisted company, then you will be required to provide details in ITR-2. The information includes the name of the company, PAN, several shares held or gained by you, shares sold by you, etc. Directors and those who held unlisted equity shares during the financial year 2018-2019 can no longer file ITR-1 or ITR-4, they must file either ITR-2 or ITR-3 as said by Archit Gupta, founder, and CEO of Cleartax.com. All need to file electronically except for 80 years old and are filling ITR-1 or ITR-4 can file in pen and paper. Earlier those with income up to Rs 5 lac and not seeking refund could file offline but now this is no longer possible as most ITR forms are now filed online. ITR-4 can now only be filed by those who are resident or ordinarily resident and their total income doesn’t exceed Rs 50 lakh and having income from business and profession we compute whose income under section 44AD, 44ADA or 44AE. ITR-4, either cannot be used by the individual who is the director of a company or has invested in unlisted shares. ITR-3 applies to individuals and HUFs having income from profits and gains of business or profession.