#FinancialBytes: Here are the changes in Income-tax return (ITR) forms
The new Income tax forms have been released online. As per new rules, the taxpayers need to provide certain additional details, such as days of residency in India, holdings in unlisted shares, and buyer details in case of capital gains earned on sale of immovable property, among other changes. Here's all you need to know about the changes in ITR forms.
The ITR-1 form is applicable to resident individuals, other than directors of a company or the holders of unlisted equity shares. The total income in this case must not surpass Rs. 50 lakh. An additional row for claiming a standard deduction of Rs. 40,000 for FY 2018-19 has been added. If there are tax exempt allowances, that amount needs to be mentioned separately.
One also needs to provide source-wise income details, like interest income from savings account, bank deposits, income tax refund, family pension and others, under 'Income from other sources' column of new ITR-1 form.
Such individuals and HUFs (Hindu Undivided family) that do not earn income from profits/business/profession, can file their returns using ITR-2 form. According to changes, taxpayers are required to specify their residential status (no. of days spent in India) for FY 2018-19. Furthermore, the amount must be divided into cash and other modes of contribution, in the 80G column of the form.
Such taxpayers who are residents/ordinary residents of India, and earn a cumulative-income upto Rs. 50 lakh are required to file ITR-4 form. Directors/individuals who hold unlisted equity-shares during FY 2018-19 shall now file returns using form ITR-3, and not ITR-4. Notably, only those taxpayers who are 80 or above, can file ITRs using paper-filing facility. Others must mandatorily file their returns online.
