ITR Forms Applicable for AY 2019-20 (FY 2018-19)

Thursday, May 9th, 2019 Amritesh no responses 165 Views

Time for filing income tax returns is here. Income Tax Return (ITR) Forms for the Assessment Year 2019-20 (Financial Year 2018-19) is available on the Income Tax Portal. Central Board of Direct Taxation (CBDT) has issued 7 ITR forms for the Financial Year 2018-19 (Assessment Year 2019-20). The applicability of the ITR forms has been discussed below.

IT Forms for Assessment Year 2019-20

The new ITR forms require Salaried Individuals to provide the basic details of the Salary (components as available in Form 16). Furthermore, for Income from Businesses, GST and Turnover details need to be furnished while filing returns. Non-Resident Individuals need to provide any one Foreign Bank account details so that the refund could be processed.

Income Tax Slabs and Rates For Financial Year 2018-19

Key points related to ITR Forms Filing for FY 2018-19 (AY 2019-20):

#PAN needs to be linked with the Aadhaar, in case the same is not already done. Aadhaar number needs to be quoted without which ITR will not be processed. It is mandatory to link Aadhaar with PAN by 30th September,’19.

#Form-16 undergoes changes; detailed break up of tax-exempt allowances & tax-breaks needs to be provided eliminate discrepancies. This makes it easier for the Tax Payers filing return using ITR-1 form.

#Single Page ITR-1 Form is available for Individuals with Annual Income up to 50 lacs p.a. (Income from Salary/Pension, One House Property, Interest)

#Offline/Paper Returns may be filed only by the Super Senior Citizens (above 80 years of age) using ITR-1 & ITR-4 form. Previously, Individuals (including HUF) with annual income below Rs 5 lacs and with no income tax refund could also file offline returns.

#Standard Deduction of Rs 40,000/- is available to Salaried Individuals in lieu of Conveyance Allowance and Medical Reimbursement.

#Cess of 3% (comprising of 2% cess for primary education and 1% for secondary & higher education) has been replaced with 4% Health & Education Cess.

#Long Term Capital Gain (LTCG) tax is applicable on gains in excess of Rs 1 lac on Sale of Equities & Equity Oriented Mutual Funds during the Financial Year.

#Due Date for filing of Income Tax Returns is 31st July, 2019. Penalty up to maximum of Rs 10,000/- to be levied in case the return is not filed within the due date.

Income Tax Applicability For FY 2018-19
Income Tax Slabs & Rates For Financial Year 2018-19

Types of ITR Forms and its Applicability

Income Tax Return (ITR Form-1)

ITR-1 known as Sahaj is primarily for the Salaried Individuals. Additional Disclosure related to the Income from House Property, exempted Income received during the financial year (Life Insurance, PPF, Dividend, etc) needs to be provided at the time of filing returns.

The form is applicable for following class of Individuals whose total Income includes:

#Income from Salary/Pension (Up to Rs 50 lacs)

#Agriculture Income not exceeding Rs 5,000/-

#Income from House Property (Only 1 House)

#Income from Other Sources (Interest Income)

This form is not applicable for following class of Individuals:

#Income from more than 1 House Property

#Winnings from Lotteries or Horse Races

#Income from Capital Gains Not Exempt from Tax (Short or Long Term)

#Agriculture Income exceeding Rs 5,000/-

#Individual holding unlisted equity share during the FY

#Income from Business or Profession

#Losses brought forward from previous years or Other Head Sources

#Holding position of Director in a Company

#Not Ordinarily Resident (NOR), Non Resident Individual (NRI) or Any Resident holding Assets or Income from any Source outside India

#Relief Claimed under International Tax Norms (Sec 90 & 91)

Note: Only, Ordinarily Resident Individual may file returns using this Form.

Income Tax Return (ITR Form-2)

ITR-2 form has been revised; additional details need to be provided by the Individual. Transactions related to unlisted shares held by an Individual needs to be disclosed while filing return. Residential Status, Capital Gain transactions needs to be furnished at the timing of filing returns.

It is applicable to Individuals and Hindu Undivided Family (HUF) whose Total Income includes:

#Salary/Pension Income (Including in excess of Rs 50 lacs)

#House Property Income

#Income from Capital Gains

#Income from Other Sources

#Winnings from Lotteries and Horse Races

#Clubbing of Income with another Individual (Child, Spouse etc)

#Losses brought forward from previous years

#Resident Indian with Foreign Bank Accounts, Assets or Source of Income

#Not Ordinarily Resident and Non Resident Individuals

This form is not applicable for following class of Individuals whose Total Income includes:

#Income from Business or Profession

#Income as Partner from Partnership or Limited Liability Partnership Firm

Income Tax Return (ITR Form- 3)

The form is applicable to Individuals or HUF whose taxable income includes Income from Proprietary Business or Profession, but does not qualify to file return using ITR 4 (Sugam) form. As per new changes, Audit details are required to be provided while filing returns. PAN details of partners in partnership firm also need to be furnished.

This form may be filled by following class of individuals or HUF:

#Salary/Pension Income (Including in excess of Rs 50 lacs)

#House Property Income

#Income from Capital Gains

#Income from Other Sources

#Winnings from Lotteries and Horse Races (Speculative Business)

#Clubbing of Income with another Individual (Child, Spouse etc)

#Losses brought forward from previous years

#Resident Indian with Foreign Bank Accounts, Assets or Source of Income

#Income from Proprietary Business or Profession

#Not Ordinarily Resident and Non Resident Individuals

Income Tax Return (ITR Form- 4)

This form also known as “Sugam” is applicable for Individuals or HUF whose tax is calculated on Presumptive basis. Following Individuals or HUF may use this form:

Business Income calculated in accordance with special provisions laid out in Section 44AD, Section 44ADA and44AE of the Act.

#Income from Salary/Pension

#House Property Income (Only 1 House)

#Income from Other Sources (Interest, etc)

This is not applicable for the following class of Individuals or HUF:

#Income from more than 1 House Property

#Winnings from Lotteries or Horse Races

#Income from Capital Gains Not Exempt from Tax (Short or Long)

#Income from Agriculture Income in excess of Rs 5,000/-

#Business or Professional Income not in accordance with Special Provisions

#Director of Companies or Holding Unlisted Shares.

#Losses brought forward from previous years or Other Head Sources.

#Income taxable U/S 115BBDA or nature of Income referred in U/S 115BBE

#Relief claimed under International Taxation Norms (Section 90 & 91)

#If the turnover of business is more than Rs 2 crores or Income from Profession exceeds 50 lacs. Net Income is assumed at 8% (6% in case of digital receipts) for Business and 50% of the Total Gross Receipts in case of Profession.

Income Tax Return (ITR Form- 5)

This form is applicable for Firms, Limited Liability Partnership (LLP) firms, Association of Persons (AOPs) and Body of Individuals (BOIs).

Income Tax Return (ITR Form-6)

This Form may be used by a Company, other than a Company claiming exemption Under Section 11.

Income Tax Return (ITR Form-7)

This  Form  may  be  used  by  persons  including  companies  who  are  required  to  furnish  return  under  section  139(4A)  or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E)or section 139(4F), (i.e, trusts, political parties, institutions, colleges, investment fund, etc).

Income Tax Return (ITR-V)

It is the acknowledgement of the return filing.

Submission of ITR Forms

All income taxpayers are now required to submit their returns online. Individuals need to seed their Aadhaar Number with PAN to process the income tax return. Last date for Tax Filing is 31st July 2019 for Individuals, Body of Individuals (BOI), Hindu Undivided Family (HUF), Association of Persons (AOP). Businesses complying with Audit need to file returns by 30th September,’19 while Businesses under purview of Transfer Pricing need to file returns by 30th November,’19.

Instructions related to filing of ITR Forms is shared in the link below.

Online Tax Filing Portal

Instructions related to Filing of Returns

This article is for informational purpose only, aiming to provide brief idea about Income Tax Return Forms and its applicability. Readers are advised to research further to have more clarity on the topic. We do not claim expertise on the subject. It is very important to do your own study and consult your Tax Consultant before making any income tax related decision.

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Amritesh is an experienced professional in the field of HR, Finance and Compliance. He is currently working in the IT Industry with an US based firm. He took up Blogging as a hobby which eventually turned into passion. He primarily focuses on topics related to Personal Finance, HR, Compliance and Technology.

All the opinions/suggestions/views expressed on this blog are just for sharing information. Readers are requested to consult their respective financial advisers and experts before taking any decision. Views shared through post or comments are personal opinion meant for reference of the readers. These should not be considered as Investment Advice or Legal Opinion. The Blog or the Author does not take any responsibility regarding any such action taken by any Individual.
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