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Posted on April 24, 2021
Recently, the Indian government has notified new tax return forms for FY2018-19 (assessment year 2019-20). Further to the Extension of the IT Filing date to 31 August 2019 (the extension of due date was applicable to all taxpayers liable to file their tax returns by 31 July, the original due date) we are now required to fill out the new ITR Form. The form is set to capture details that help check evasions and eliminate loopholes, if any. Here are a few key changes to the new ITR Form 1:
- An individual and who is a resident in India and earning income up to Rs 50 Lakh can use ITR Form 1 to file tax. This form is be filed for reporting income from salary, one house property, income from other sources and agricultural income up to Rs 5,000/-.
- However, it cannot be used by an individual who is the director of a company and has investments in unlisted equity shares, or has income on which TDS (tax deducted at source). Those you have unlisted shares cannot use ITR Form 1.
- It is mandatory to mention Indian address and mobile number for hassle free communication from the tax department.
- Other than salary, the components of the salary package need to disclosed allowance-wise. For example if a portion of the HRA has been claimed as exempt, the amount exempted needs to be reported separately. In addition, a detailed break-up of income earned from other sources needs to be provided.
- A field for standard deduction and exemption on interest from bank and post office deposits under Section 80TTB is also introduced.
- There is an additional disclosure requirement towards income from house property wherein taxpayers are required to specify whether the house was self-occupied during the year or was let out on rent. If so, income from the rent needs to be declared.
To know more about your ITR Form 1 – Key Changes, request a call back from Kanakkupillai Team NOW!
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