Changes in new ITR forms

April 6, 2019 Finance Talk Valli Sarvani No comments

In order to increase the tax net and lower tax evasion, the CBDT notified new rules. In this context, certain changes are implemented in the latest version of income tax return forms or ITR forms.

In other words, the new ITR forms require elaborated details for all sources of income that is disclosed by the assessees.

For instance, any person who is a Director or shareholder in an unlisted company should have to disclose their directorship or shareholding with all details including the PAN number of the company.

Here is a list of changes in the new ITR forms:

The new ITR forms for AY 2019-20 increase reporting requirements.
The individual assessees should have to disclose details regarding their residential status as well as directorship details.
One should provide comprehensive details regarding their unlisted equity shareholding. They even should disclose the scope of Foreign Assets in addition to the income from any source outside India to include details of Foreign Depository Accounts, Foreign Custodial Accounts etc.
A clear bifurcation should be shown between donations made in cash and another mode of payment for Section 80G deductions.
The simpler forms of ITR 1 and ITR 6 are no longer available for the Director/ shareholder of an unlisted company.
ITR 1- Sahaj cannot be used by individuals who are directors of a company or have a shareholding in an unlisted company.
ITR 4- Sugam cannot be used by individuals/HUF who are not resident and ordinarily residents.
ITR 1 – Sahaj can be used by individuals who are residents and have the total income below ₹50 lakhs with income from salaries, one house property, other sources of income like interest etc. and agricultural income up to ₹5,000.
The persons who are disclosing their agricultural income to be exempt from income tax should have to furnish details like location of the agricultural land, area and quality of the land etc.