Yes we all love surprises but of the pleasant kind of course! When on the topic of surprises, do remember to check out the new AY2019-20 forms released by the Income Tax Department unless you want surprises of an unpleasant kind! It always pays to be well informed about changes in income tax filing so that you can file returns smoothly without any hassles whatsoever.
The IT return forms have already been notified by the IT Department for individuals with regard to AY (assessment year) 2019-20. The ITR-1 or Sahaj form has remained majorly unchanged which applies for salaried professionals. However, there have been changes made to ITR 2, 5, 3, 7 and 6 as per reports. Companies, firms and individual taxpayers are required to file their returns for 2018-19 in the present fiscal year.
What are the major ITR Forms?
ITR-1 is the form filled up by those individuals earning up to Rs. 50 lakh from salary, one house property, sources such as interest and agricultural income up to a maximum of Rs. 5,000. ITR-2 is filled up by HUFs (Hindu Undivided Families) and individuals who do not have any income from gains/profits in profession/business and ITR-3 is filled up by those HUFs and individuals who have gains/income from profession/business.
Sugam or ITR-4 is for HUFs, individuals and firms (with the exception of LLPs) who have income up to Rs. 50 lakh with presumptive income arising from profession/business. ITR 3 and 6 are for companies who will have to provide details of their gross business receipts or turnover and GST is also included. The last filing date is 31st July, 2019 for those who do not need auditing of their accounts. The new forms have recently been notified and additional information will be required from taxpayers including holdings in unlisted shares, days of residency in India, details of buyer of property (in case of seller earning capital gains on sale of immovable property) and the like.
Changes to ITR Forms that you should keep in mind
There are some changes that have been made to ITR Forms that you should be aware of. These include the following:
- ITR-1- This applies to individuals who are residents of India with the exception of directors of companies/unlisted equity shareholders. Total income should not outstrip Rs. 50 lakh. An extra row has been given for standard deduction claims up to Rs. 40,000 for FY2018-19. You have to provide income-wise information including bank deposits, interest, tax refund, pension income and so on in the Income from other sources In case of allowances which are completely/partially tax exempted, the amounts should be separately listed in the ITR-1 form.
- ITR-2- ITR 2 is filed by HUFs (Hindu Undivided Families) and individuals who are not earning income from profit/gains from profession/business. Based on the new form that has been notified, you will have to specify residential status for FY2018-19 and individuals can choose between resident/non-resident/ordinary resident and information regarding the days spent in India has to be given as well. In the 80G column, the amount should be divided into cash and other contribution methods.
- ITR-4- Those who have income up to Rs. 50 lakh and ordinary resident/resident of India can file this form. Directors of companies or those with unlisted equity shares cannot file this form anymore. Those who have businesses of leasing/hiring/plying goods carriages and have chosen Section 44AE, i.e. presumptive taxation will have to offer information like registration number of goods carriages along with details on whether they are owned, leased or hired and the overall tonnage capacity.
Taxpayers above the age of 80 can get paper filing facilities only. Others must file online returns. Those who have income up to Rs. 5 lakh and will seek refunds cannot file paper returns from FY2018-19 returns itself. The new tax returns will be compulsorily filed online with the exception of senior citizens above 80 as mentioned above. Taxpayers should start filing ITR-1 or ITR-4 and PAN and Aadhar should be linked as well. Form 16 will also be put up by employers soon and you can then start uploading Form 16 and start online filing for FY2018-19.
Make sure that you have these changes noted down since you do not want a situation where you have to file again or the Income Tax Department deems your return incorrect due to lack of proper information. Make sure that your taxes are filed in a timely manner.