Important Changes in Income Tax Return form for FY 2018-19 [Assessment Year 2019-20]

1.      Investment details in unlisted companies 

In case of tax payer is holding shares in an unlisted company then, they are required to disclose the details of the Holding in ITR-2, ITR-3 & ITR-4. The details required are extensive i.e.

- name of the company,

- PAN of the company,

- number and cost of acquisition at the beginning of the year,

- number of shares, face value,

- issue price (or purchase price) and date of purchase of shares acquired during the year,

- number and sale consideration of shares transferred during the year,

- number and cost of acquisition of shares held at the end of the previous year. 

2.      Mention of Director Identification Number [DIN] number

In case the tax payer is Director of a company, then they will be required to specify their DIN (Director Identification Number) in ITR-2 or 3 whichever is applicable. Along with this they need to furnish the following information :

- name of company,

- PAN,

- whether shares are listed or unlisted.

3.      Reporting Salary Income on Gross Basis

The new ITR forms have changed the mechanism of reporting of salary income. Now an individual has to mention his gross salary and then the amount of exempt allowances, perquisites and profit in lieu of salary shall be deducted or added to arrive at the taxable figure of salary income. Further, the tax payer also need to give separate details of all deductions allowable under Section 16, namely:

-        Standard deduction

-        Entertainment allowance 

-        Professional tax

4.      Complete details of buyer to whom you have sold property

If the tax payer has sold the property in FY 2018-19, then while filing ITR-2, they will be required to provide complete details of the buyer to whom they have sold the property. The details need to be given like:

-        Name of the Buyer

-        PAN of the Buyer

-        Percentage share in property

-        Amount

-        Complete Address of the property with PIN   

Wadhwa says, "The buyer details have to be provided irrespective whether the capital gains accrued are of short-term or long-term in nature. The details of buyer will have to be given if TDS is deducted by your buyer while making payment." 

5.      Online filing of Tax Return is mandatory for Everybody except Super senior Citizen [above 80 years].

6.      Changes in reporting of house property Income / Loss

Specifying the type of house property

While providing details of one house property in ITR-1, tax payer is required to specify whether the house is - 'Self Occupied', 'Let-out' or 'Deemed Let-out.'

Property wise details of rent arrears 

"While filing ITR-1 or ITR-2 as applicable, if there are any rent arrears that are received to the tax payer in FY 2018-19 then it have to report property wise as received. Say, If an individual has one house property which is let out during FY 2018-19, then the rent received is required to be reported in ITR-1. 

7.      Full disclosure of interest income

The tax payers are required to specify the full bifurcation details of the interest income or any other income received. Income from other sources head in ITR-1 has been updated to provide details of the source from where interest or any other income is received. 

8.      Residential status

Earlier the Tax payers were required to provide the details of residential status as resident, resident but not ordinarily resident or non-resident. From FY 2018-19 they need to provide additional information with respect to their residential status, such as,

-        number of days of stay in India,

-        jurisdiction of his residence and

-        tax identification number in case he is a non-resident. 

9.   Identification of Correct ITR Form for Tax Payer 

-        ITR-1 (SAHAJ):

resident and ordinarily resident (ROR) individuals having total income of up to ₹ 50 lakh, having income from salaries, one house property, income from other sources and agricultural income up to ₹ 5,000. Non-residents cannot file ITR-1, irrespective of their source or quantum of income.

-        ITR-2:

Individuals not having income from profits and gains of business or profession (who cannot use ITR-1).

-        ITR-3:

Individuals having income from profits and gains of business or profession.

-        ITR-4 (SUGAM):

Individuals, and firms (other than LLPs), being a resident, having total income up to ₹50 lakh and having income from business and profession computed under the presumptive taxation scheme.

-        ITR-5 (SUGAM):

For persons other than:- 
(i) Individual,
(ii) HUF,
(iii) Company and 
(iv) Person filing Form ITR-7