ITR forms for FY 2018-19: Here are key changes you need to be aware of
Some of these changes have been made with respect to changes in income tax laws made in Budget 2018 for 2018-19 and onwards.
Certain changes have been in Income Tax Return (ITR) forms for 2018-19 by the government. Some of these changes have been made with respect to changes in income tax laws made in Budget 2018 for 2018-19 and onwards. There are some other changes as well in the ITR forms which the Income-tax assessees are set to come across when filing return for Financial Year 2018-19.
You need to be aware of some of the key changes in ITR forms 1 and 2:
1. It’s mandatory to file ITR online now
Unlike the previous year, all individuals (except for super senior citizens) will be required to file their ITRs electronically. The ITR-1 for FY 2018-19 cannot be filed in paper format by the taxpayers having income below Rs 5 lakh with no refund.
2. Furnish complete details of the buyer to whom you have sold property
If you have sold a property in FY 2018-19, then while filing ITR-2, you will be required to provide complete details of the buyer to whom you have sold the property. Besides this, it is mandatory to deduct TDS if the sale value exceeds Rs 50 lakh.
3. Property wise details of rent arrears
While filing ITR-1 or ITR-2 as applicable, if there are any rent arrears that are received by you in FY 2018-19 then you have to report them property wise as received. If an individual has one house property which is let out during FY 2018-19, then the rent received is required to be reported in ITR-1. For individuals with more than one house property, they are required to file their ITR using ITR-2.
4. Specifying the type of house property
While providing details of your one house property in ITR-1, you are required to specify whether the house is – ‘Self Occupied’, ‘Let-out’ or ‘Deemed Let-out.’ In the previous year’s ITR-1, there was no such option of ‘Deemed Let-out’ in ITR-1.
5. Investment details in unlisted companies
If you are holding shares in an unlisted company then, you are required to disclose the details of your holdings in ITR-2. The details required are extensive – name of the company, PAN of the company, number and cost of acquisition at the beginning of the year, number of shares, face value, issue price (or purchase price) and date of purchase of shares acquired during the year, number and sale consideration of shares transferred during the year, number and cost of acquisition of shares held at the end of the previous year.
6. Full disclosure of interest income
Along with providing a full break-up of salary income, taxpayers will be required to specify the full bifurcation details of the interest income or any other income received by them. Income from other sources head in ITR-1 has been updated to provide details of the source from where interest or any other income is received.
7. Residential status
The new ITR-2 form asks individuals not only to specify the residential status as resident, resident but not ordinarily resident or non-resident, but also to provide additional information with respect to his residential status, such as, number of days of stay in India, jurisdiction of his residence and tax identification number in case he is a non-resident.