Everything you need to know about the new Income Tax forms for 2019-20

By Reshmi Rea Sinha  |  First Published May 12, 2019, 12:03 PM IST

The Donations made in cash or otherwise are to be shown for claiming deduction u/s 80G. Donations in cash above Rs 2,000 are not allowed.

INCOME TAX 2019-20 New Forms

1. Vide notification No. 32 of 2019, exercising power under section 139 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes (CBDT) makes the rules further to amend the Income-tax Rules, 1962, which rules called the Income-tax (Second Amendment) Rules, 2019 and comes into force with effect from the 1st day of April, 2019.  The notification provided amongst others: '..3. In the principal rules, in Appendix II, for Forms "Form Sahaj (ITR-1), Form ITR-2, Form ITR-3, Form Sugam (ITR-4), Form ITR-5, Form ITR-6, Form ITR-7 and Form ITR-V", the following Forms shall, respectively, be substituted … '. 

2. Brief descriptions of the Forms

2.1 Form ITR-1 or Sahaj is for individuals being a resident, other than not ordinarily resident, having total income up to Rs 50 lakh, having income from salaries, one house property, other sources, i.e. Interest etc., and agricultural income up to Rs 5,000.  

2.2 Form No. ITR-2 is for Individuals and HUFs not having income from profits and gains of business or profession whereas Form No. ITR-3 is for individuals and HUFs having income from profits and gains of business or profession.

2.3  Form No. ITR-4 Sugam is for Individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs 50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE of the Income Tax Act. 

2.4  Form No. ITR-5 is for persons other than,- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7 and Form No. ITR-6 is for Companies other than companies claiming an exemption under section 11 of the Income Tax Act and Form No. ITR-7 is for persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only.

3. Assessees filing ITR-3 and ITR-6, i.e. companies will have to disclose information regarding turnover and/or gross receipts for Goods and Services Tax has been now included in ITR-3 and ITR- 6 as well. Last year, it was applicable only for the assessees filing ITR-4.  

4. The assesses for whom regular books of accounts are maintained, Profit and Loss account are split into Manufacturing, Trading and Profit and Loss account in ITR-3, ITR-5, ITR-6.  In Manufacturing account details of opening inventory of raw material and work in progress, purchases, direct wages, direct expenses, factory overheads and closing stock are to be given and cost of goods produced to be transferred to Trading account. In Trading account, particulars of sales, purchases, direct expenses, Opening and Closing stock of finished goods etc. to be given and gross profit to be transferred to Profit & Loss account. Indirect incomes and expenses to be given in profit &Loss account. This will reveal gross profit and the net profit. The gross profit and net profit as per books of accounts will have to be reconciled with the income tax return.  

5. When the net agricultural income exceeds Rs.5 lakhs, details to be provided for each agricultural land separately in ITR-2, ITR-3, ITR-5, ITR-6, i.e. name of district along with pin code in which agricultural land is located, measurement of agricultural land in acre, whether the agricultural land is on ownership or leasehold, whether the agricultural land is irrigated land or rain-fed.   Now, from the above information, crop pattern and yield of each agricultural land can be ascertained.  

6. Comprehensive information of shareholders to be provided by unlisted companies and startups along with its assets and liabilities details, such as, particulars of building or land appurtenant thereto, or both, being a residential house, particulars of land or building or both not being in the nature of residential house, particulars of listed and unlisted equity shares, particulars of other securities, particulars of capital contribution to other entity, particulars of loans & advances to any other concern, particulars of motor vehicle, aircraft, yacht or other mode of transport, particulars of jewelry, archaeological collections, drawings, paintings, sculptures, any work of art or bullion and particulars of loans, deposits and advances taken from a person other than financial institution.
  
7. The residential status in India is to be provided by individuals in ITR-2 and ITR-3, i.e. stay in India whether more than 182 days or more during the year, stay in India is 365 days or more in 4 preceding years, etc. For non-residents, information of jurisdictional residence and Taxpayer Identification Number to be mentioned along with with the total period of stay in India during the year and 4 preceding years. 

8. Information regarding turnover and/or Gross receipts as GST return filed, i.e. GSTIN and the annual value of outward supplies, which was earlier was limited to ITR-4 only, now made applicable to ITR-3, ITR-5 and ITR-6 as well.

9. The Donations made in cash or otherwise are to be shown for claiming deduction u/s 80G. Donations in cash above Rs.2,000/- are not allowed.

10. TAN of tenant is to be provided in the event of TDS deducted on rental income.  PAN and/or TAN of the buyer to be furnished in the event of sale of immovable property and TDS deducted.

11. An individual, who either is a Director in a company or has invested in unlisted equity shares or claiming a deduction from income from other sources except for standard deduction for family pension, cannot file ITR-1 (Sahaj) or ITR-4 (Sugam).

12. Deduction under section 80TTB is introduced for the senior citizens allowing a deduction up to Rs. 50,000/- of interest on bank deposits.  From Assessment Year 2019-20, only persons above 80 years of age, i.e. super senior citizen using ITR-1 or ITR-4 can file paper returns. Others have to file electronic returns. 
The last date of filing Income Tax Return is 31st July for those who are not required to get their accounts audited.                                   

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