INSUBCONTINENT EXCLUSIVE:
Income tax return: The Income Tax Department notified seven ITR forms earlier this monthIncome tax assessees are set to come across certain
changes in the income tax return (ITR) forms
The Income Tax Department has brought about certain changes in select ITR forms meant to be used for assessment year 2019-20
Individuals and businesses are required to file their income tax returns for the income earned in financial year 2018-19 using these forms:
ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7
These seven forms - also known as ITR forms - have been notified by the taxman earlier this month
the forms have been rationalised and reporting requirements increased
July 31 is the due date for filing income tax returns (ITR) for assessees not required to to get their accounts audited.Section 80G
changesWhile there are no changes with respect to reporting of income eligible for benefit under Section 80C of the Income Tax Act, cash and
non-cash donations eligible for deduction under Section 80G/80GGA need to be reported, say tax experts."The forms seek bifurcation between
donation in cash and other mode for Section 80G deduction purposes," said Amit Maheshwari, partner, Ashok Maheshwary Associates LLP.Changes
applicable to company directorsIndividuals serving as a director in a company can no longer file the income tax return using Form ITR-1 or
Such individuals will be required to furnish details such as the company's Permanent Account Number (PAN) and Director Identification
Number (DIN), and mention whether the shares are listed or unlisted
Additionally, details on investments and transactions undertaken in relation to such shares will also be required."These changes appears to
have been introduced to crack down on shell companies and checking on routing of black money," said Rishi Kapadia, partner, Dhruva
details of the agricultural land need to be provided such as name of district, land area, whether land is owned or leased, whether the land
is irrigated or rain-fed," added Mr Kapadia.Changes with respect to unlisted company sharesIncome tax assesses will be required to furnish
details of the investments held, acquired or transferred in unlisted equity shares during the financial year."An individual/HUF (Hindu
Undivided Family) holding unlisted shares needs to disclose name of the company, opening number of shares, cost, details of shares acquired
ITR-4Form ITR-1 - also known as "Sahaj" - cannot be used by an individual serving as director of a company, having investments in unlisted
equity shares, or having income on which TDS (tax deducted at source) has been deducted in another person's hands.Form ITR-4 - or "Sugam"
- cannot be used by individuals or HUFs non-resident, ordinarily resident, non-resident partnership firms, directors of companies or persons
having investment in unlisted equity shares or having more than one house property.Changes applicable to NRIsIndividual taxpayers are now
required to select the applicable residential status rule based on the actual physical stay of the individual tax payer, say
experts.Overseas Citizens of India (OCI) and Persons of Indian Origin (PIO) qualifying as non-resident are required to report the actual
numbers of days of stay in the country in the relevant financial year as well as preceding four years, Mr Kapadia explains.Also, individuals
qualifying as NRI need to report the jurisdiction of residence and Taxpayer Identification Number, he adds.Changes with respect to sale of
capital assets (immovable property)In case of sale of immovable property during financial year 2018-19, details such as name, PAN,
percentage share, the value of sale and address of the buyer need to be furnished.Get the latest election news, live updates and election
schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections
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