CBDT has made changes to who will need to file using which ITR forms for assessment year 2019-20.
It is the season of filing Income Tax returns. The last date for filing an ITR is July 31. As per Taxmann, the CBDT has notified five important changes for the assessment year 2019-20.
For an individual, there are six different ITR forms to file a return. For income from salary, an individual has to file ITR 1, for income from capital gains, the taxpayer has to file ITR 2, ITR 3, if he/she has an income from business/profession and ITR 4, if an individual has income under presumptive taxation schemes such as income for small businesses or an individual is transporter who owns less than 10 vehicles, etc. The website also claims that there as many 75 changes made in the current ITR form
The five changes are listed below:
1. If an individual is a director of a company, s/he has to file ITR 2 and 3. The individual cannot file ITR 1 and ITR 2. The CBDT has made changes to identify ghost directors and shell companies. Every director of a company has to file online KYC form, or the Director Identification Number (DIN) shall be deactivated. The director has also need to submit company name, PAN, shares of the company are listed or unlisted on stock exchanges and DIN number with ITR 2 and 3.
2. If a taxpayer has invested in unlisted companies and purchased shares of those companies, then the individual has to file ITR 2 and 3. As per Taxmann, if a company issues shares at a price less than the fair market value and the difference between such transaction is more than Rs 50,000 then the difference is taxable under the hands of shareholders which comes the under the head of income from other sources. Such an individual has to submit details such as the name of the company, PAN number of the company, number and price of the shares at the beginning of the year, number of shares, face value, purchase price & date of purchase of shares, number and price of the shares at the end of the year.
3. CBDT has made changes in new ITR forms where the individual has to mention gross salary and an exempt portion of the allowance has to be reported while filing the ITR. In addition to this, the new ITR form also provides an opportunity to claim all deductions separately such standard deduction, entertainment allowance and professional tax.
4. If an individual has sold an immovable property in the FY 18-19, then the taxpayer has to mention the details of the buyer such as the name of the buyer, PAN number of the buyer, etc. The individual has to provide the details even if TDS is deducted during the transaction.
5. It is mandatory for an individual to mention the nature of income taxable under the head of income from other sources and also has to mention deductions claimed in respect of pension.
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