Changes in New ITR for AY 2019-20 FY 2018-19 Decoded
The Central Board of Direct Taxes (CBDT) has notified the Income-tax Return (ITR) Forms applicable for the Assessment Year 2019-20. These ITR Forms will be applicable for the filing of income-tax return in respect of income earned during the previous year 2018-19 (between 01-04-2018 to 31-03-2019). The new forms incorporate the changes made by the Finance Act, 2018 in the Income-tax Act, 1961.
1. Start-ups are required to report registration number allotted by DPIIT & other information.
2. Start-ups & closely held companies are required to report details of shareholding.
3. Start-ups & unlisted companies are required to report additional details regarding assets & liabilities.
4. Assessee holding unlisted equity shares at any time during the previous year is required to report details of investment in unlisted companies.
5. Section 54EE is deleted from the capital gain schedule due to no notification of fund by the government in this regard.
6. Due to insertion of new section 112A (for leving concessional tax rate of 10% on long term capital gain arising from the transfer of securities on the sale of which STT is paid exceeds Rs. 1 Lakh) section 10(38) exemption is withdrawn.
7. concessional tax rate of 25% in case of a small domestic company was applicable if turnover or gross receipts does not exceed Rs. 50 crores. Now turnover or gross receipts limit has been increased to Rs. 250 crores.
8. DDT paid on the deemed dividend is now considered as a separate entry as deemed dividend u/s 2(22)e.
9. Health & education cess is charged at 4%.
10. Alternate minimum tax at a concessional rate of 9% is chargeable on units located in International Financial Service Centre (IFSC).
11. u/s 54EC exemption can be claimed on the transfer of Land & Building only instead of any long term capital asset.
12. Standard deduction from salary income of Rs. 40,000.
13. Reporting of amount disallowable u/s 40 or 40(A) for cash transactions exceeding Rs. 10,000 & non deduction of TDS.
14. New section inserted for a deduction to senior citizens up to Rs. 50,000 for interest income from deposit with bank or post office or co-operative banks.
15. Section 50C has been amended, with effect from Assessment year 2019-20, to provide that in case of transfer of land or building if stamp duty value does not exceed 105% of sales consideration, the sales consideration shall not be substituted by the stamp duty value for the purpose of the full value of consideration.
16. Now salary income is required to be reported on a gross basis.
17. TAN of employers is required to be furnished if TDS is deducted.
18. In case of house property one more option (Deemed let out) is being introduced.
19. Now arrears/unrealised rent received during the year needs to be reported property wise.
20. Buyers information is required to be furnished in case of transfer of immovable property under capital gain head.
21. No separate reporting of interest paid to partners by firms.
22. Schedule P & L has been enlarged as Manufacturing account, Trading account and P & L account to seek more information.
23. Separate reporting is required for income generated from partial agricultural and partial business operations.
24. Reporting of name and address of the debtor in case of bad debts.
25. Reporting of turnover and profit from speculative activities under profit & loss account.
26. Reporting of GSTIN & GST turnover is required.
27. Reporting of business transactions with registered and unregistered suppliers under GST removed.
28. Reporting of disallowance under section 14A is required.
29. Reporting of audit requirement under other acts is required.
30. The taxable portion of PF withdrawal needs to be reported separately.
31. In the case of ITR 1 & ITR 4 nature of other income required.
32. Now source wise bifurcation of interest income is required (bifurcation in interest income from Savings bank deposit, Deposits-FD etc, Income tax refund, in nature of pass-through income, others).
33. Accrual or receipt of dividend and section 2(24)(ix) casual income should be disclosed.
34. Details of agricultural land to be furnished if agricultural income exceeds Rs. 5 lakhs.
35. Relevant field to claim Section 80PA deduction by the Producer Companies is now provided.
36. New Schedule for claiming deduction under Section 80GGA is provided.
37. Reporting of donation made in cash to curtail deduction under Section 80G.
38. Deduction under section 10AA is allowed from the total income of assessee instead of total income from the eligible undertaking.
39. Non-residents cannot use ITR-4 (Presumptive Taxation) to file the return.
40. ITR-4 (Presumptive Taxation) cannot be used if total income is more than Rs. 50 lakhs.
41. A person claiming deduction under section 80RRB or 80QQB cannot use ITR-4 (Presumptive Taxation).
42. The person not ordinary resident can not use ITR 4 (Presumptive Taxation).
43. Now, a person other than individual or HUF being a partner in the partnership is required to furnish details of the partnership.
44. Separate schedules are required to report income taxable on a presumptive basis.
45. Assessee opting for presumptive scheme needs to disclose the Business name, code & Description.
46. In case of a heavyweight vehicle, Taxability under section 44AE is on the basis of tonnage capacity of goods carriage.
47. Business trust and Investment fund shall use ITR-5 instead of ITR-7.
48. Details of registration under the Income-tax Act and other laws is required.
49. Schedule AI, ER & EC to be filed by trust/institutions claiming exemption u/s 11, 12 & 10(23C).
50. Schedule ER & EC require more details about expenditure incurred towards objects of trust/institution.
51. Application of income from borrowed funds or previous year’s accumulation not allowable.
52. An exemption under section 11(1A) removed from Schedule Capital Gain.
53. Reporting of exemption under Section 10.
54. No ITR-7 for persons liable to pay MAT or AMT.
55. Reporting of income not eligible for Section 11 exemption due to a violation of section 13(1)(c)/(d).
56. Information about executor of Artificial Judicial Person is required.
57. Actions to identify ghost directors and shell companies.
58. Foreign companies to report about its ultimate and immediate parent company.
59. Reporting of profit on the conversion of inventory into capital asset under profit and loss account.
60. Where a person is not liable to maintain books of accounts u/s 44AA, Gross receipts through A/c payee cheque/draft or any other mode to be shown separately.
61. In new ITR forms, besides specifying the residential status as resident, resident but not ordinarily resident or non-resident, the assessee is now required to provide additional information with respect to his residential status, such as, his no. of days stay in India, jurisdiction of his residence and tax identification number in case he is a non-resident..
62. The scope of foreign assets expanded.
63. Pass through income also needs to be reported.
64. ITR-2 can be used in case of AMT.
65. Person governed by Portuguese Civil Code cannot use ITR-4.
Comments
One of the ROI Form prescribed is No. 5. In my perspective, that is a Form which could be used only should taxpayer have + income (or loss)to report; not 'NIL'income.TO be precise, it cannot be used or e'filing system will not permit filing a nil return, by a club,or association (say, housing association) claiming total exemption from tax on the ground of the common law 'principle of mutuality'. To my mind, the said point should be clear if one considers FORM 7, prescribed specifically in certain cases entitled to total exemption but still requredc to file a roi , for the Revenue to have control and track of them. Any houghts to share !
Again suggest you should carefully study the provisions of sec 139, in a wholesome manner, to make sure what you say is complete , with no frills !
Don't bother, if you think i have bothered you, in practice and having a busy work schedule, with no merits in my doubt !
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