All the new details required in income tax return forms for FY 18-19

New look ITR 1

The forms take into account announcements made during the Union Budget 2018-19.

A field for standard deduction has been introduced—you can claim a flat deduction of Rs 40,000. Likewise, senior citizens can claim exemption of up to Rs 50,000 on interest from savings, fixed deposits as well as post office deposits.

More disclosures

ITR 2 now requires detailed information on the number of days spent in India while declaring the residential status. Until 2018-19, you had to simply choose between resident, resident but not ordinarily resident and non-resident options.

Non-resident taxpayers will have to report their overseas residency information along with taxpayer identification number. “Overseas Citizens of India (OCI) or Persons of Indian Origin (PIO) selecting residential status as ‘non-resident’ in India are required to report the actual number of days in the relevant financial year and also in the last four financial years immediately preceding the year,” 
House buyer’s information

If you have sold an immovable property, be prepared for tighter scrutiny. “You will have to mention the buyer’s name, PAN, transaction price and the address of the property”.

In case of multiple buyers, the seller will have to share details of each, along with share in ownership and amount. “The objective is to corroborate information provided by the seller and minimise scope for misreporting”.

Changes in ITR forms relevant to salaried taxpayers
ITR 1 (Sahaj)
Use if…

  • You are an ordinarily resident individual with income from salary, pension and interest of up to Rs 50 lakh, agricultural income of up to Rs 5,000, and own one house.

Do not use if…

  • You are a director in a company or have invested in unlisted shares; or have capital gains/losses to declare.

 
 

ITR 2

Use if…

  • You are a salaried individual or a pensioner who cannot use ITR 1.

 

Do not use if…

  • You draw income from any business or profession.
  • Restrictions on use of ITR 1

If you have invested in unlisted shares, you cannot use ITR 1 this year.

It cannot be used by an individual who is a director in a company either.

The form is relevant if your agriculture income is less than Rs 5,000. If it crosses this threshold, Use ITR 2.

Other changes
ITR 1 (Sahaj)

  • Furnish details of exempt income like HRA and specify nature of income from other sources.
  • Field for standard deduction and exemption on interest from bank and post office deposits under Section 80TTB introduced.

ITR 2

  • Detailed information on number of days spent in and out of India to determine residential status.
  • Disclosure of information on unlisted shares.
  • Disclosure of house buyers, details in case you have sold a property.
  • Furnish details related to agricultural income including ownership, size, location and address and status on irrigation.

Agricultural income

Income from agriculture is another focus area in the forms this year. “Agricultural income exceeding Rs 5 lakh is now to be reported separately along with additional details such as name of the district with pin code, measurement of land, whether owned or leased and whether irrigated or rain-fed under the ‘exempt income schedule”.

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