#FinancialBytes: Latest ITR-1 changes taxpayers need to be aware of
What's the story
Income tax accounts for a major part of the government's revenue and salaried individuals form a significant chunk of the overall taxpayers. Filing income tax returns (ITRs) on time every year is important. For taxpayers filing ITR-1 (Sahaj), several changes have been introduced this year which one should be aware of for easier ITR filing. Here are some ITR-1 procedural changes to know about.
#1
Option to claim deduction under Section 80GGA added to ITR-1
This year, a new option has been in the ITR-1 (Sahaj) online form, using which eligible taxpayers can claim tax deduction under the Section 80GGA. A tab for the same has been added to the ITR-1 form under which individuals need to fill up the required details to claim deductions. Under Section 80GGA, deductions against donations made for scientific research/rural development can be claimed.
#2
Changes also made in the reporting of exempted incomes
Until last year, taxpayers had to report their exempted incomes under the "Taxes Paid and Verification" tab in the ITR-1 form. However, from this year, individuals are required to report such incomes under the "Computation of Income and Taxes" tab. Also, from this year, taxpayers need to report their tax-exempt portion of allowances received from employers while filling salary details in the form.
#3
Validation of bank accounts now required for tax refunds
Earlier, the Income Tax Department decided to issue only e-refunds (electronic refunds) from 1 March 2019. These e-refunds would be issued to only those bank accounts that are linked to the taxpayer's PAN and validated on the e-filing portal. Tax refunds will be delayed for taxpayers whose bank accounts aren't linked to PAN or validated on the e-filing portal.
#4
This year, ITR verification option moved to new tab
Until last year, taxpayers filing ITR-1 were required to choose an option for verifying their ITR while selecting details like the ITR form type, assessment year, etc. However, this year, the ITR verification option has been moved to the "Taxes Paid and Verification" tab. After filling all the required details in the ITR-1 form on the e-filing portal, taxpayer can choose a verification option.
Information
#5: Taxpayers must provide detailed break-up of donations under Section-80G
Also, individuals, who have made any donations under Section 80G in FY 2018-19, are now required to provide a detailed breakup of their donations, including information like how much of the donation was made in cash and how much through banking channels.