NEW DELHI: The tax department last week notified Income-Tax Returns (ITR) forms for assessment of income of individuals and companies for the financial year 2019-20. While basic details remain pretty much the same, the I-T department has introduced additional columns, which mandates tax assesses to disclose more details of professional income, property transactions and residential status.
The notification says that ITR-1 form will be applicable only to resident individuals, with total income up to Rs 50 lakh from salary, one house property and other income sources such as interest income. However, this form will not be applicable for company directors or individuals investing in unlisted equity shares. They have to use either ITR-2 or ITR-3 forms.
Earlier, the taxpayers were only required to fill in the amount of income from other sources. The new ITR-1 form this year mandates individuals to specify details if they have income from other sources. For example, if an individual owns a house, he has to specify if it is self-occupied, let out or if he intends to let it out.
Changes are also introduced in the ITR-2 form, which is meant for individuals and members of Hindu Undivided Families, who have no income from profits and gains of business or profession.
The form also asks for an individual’s residency status. Details are to be provided on if the individual was residing in India and for how many days. The number of days the taxpayer has stayed in India in the last four years has to be filled in.
Details of shares of an unlisted company the taxpayer holds, if applicable, is to be provided with full information including name of the company, PAN, number of shares held or transacted by the person.
In yet another change, the paper filing is now allowed only for those who are more than 80 years old and are filing ITR-1 or ITR-4. For the rest, it is mandatory to file the returns electronically, including those with income up to Rs5 lakh and those who are not seeking a refund.
If an individual claim income-tax exemption for farm income, they will now have to disclose where the agricultural land is located; its size; whether it is irrigated or rain-fed; and whether they own the land or hold it on lease.
According to taxmen, the new forms aim to increase transparency and narrow the scope for tax evasion.
“We have introduced some changes based on the feedbacks. This will help in increasing transparency in tax filing,” an I-T official said.