Blog Details

Author - Advoate Achin Kumar and Associate Megha Motwani

1.      ITR Form1

An individual having total income of up to ₹50 lakh from sources such as salary, one house property, other sources (interest income) and agricultural income up to ₹5,000 can file the return in ITR-1. But, the ITR form 1 is no more applicable on :

a. The directors of company;

b. The investors of unlisted company, i.e., the company whose shares are not traded in the capital market. For instance: Private Limited Company: and

c. The person who’s TDS on his income is deducted in another person's hand.

Note:- ITR 1 provides for the standard deduction of Rs. 40,000 for employees but at the same time does not allow for the benefits of transport allowance and medical reimbursement.

2. Form 16

One must while filing the ITR 1 must consider Form 16. The changes have been introduced in Form 16 and the employee who files ITR 1 must disclose in the Form 16 the amount of exempted income, the amount of perquisites availed and all of other allowances availed.

3.  ITR 4

It is applicable on individuals, Hindu Undivided Families and firms (other than limited liability partnerships) having total income of up to ₹50 lakh, and assessees who choose to file their ITR under the presumptive taxation scheme. However, the ITR 4 is not applicable on:

a. The directors of company;

b. The investors of unlisted company:

c. individuals or HUFs who are not resident and ordinarily residents, and

d. Non-resident partnership firms.

Thus, they are entitled to file ITR 2 and ITR 3.

4.  ITR 2 and ITR 3

Whoever files any of these two forms have to now disclose the total days of their stay in India and in abroad in the previous year. For the calculation of period of stay one has to take into account the day when the flight took off and the day flight landed.

5. Income from other source

Full disclosure of income from other sources has to be given along with the bifurcation of different sources in case there are more than one. For instance, the assesse has to disclose the amount of interest form savings account, interest from fixed deposits , any family pension received and for any other source must disclose its nature.

6. House Income

The two house property now can be considered as self-occupied, which was not the case before as only one property can be a hose property and all other have to be treated as “deemed to be let out”. The required changes have already been made in the new ITR form and a new option to select “deemed let out" is provided under ITR-1 and ITR-4.

7. TDS at rental income

When TDS is applied on the income generated from rent, in that case, the PAN number of tenant must be mentioned in ITR-2 in case TDS is deducted by the tenant.

8. Donations

If someone executes donations they must disclose the amount of donation made in cash and the value of donations made in kind.

9. Sale of property

When any immovable property is sold the amount of which is more than ₹50 lakh than 1% TDS is charged and here again the PAN number of the buyer is has to be mentioned mandatorily along with the information about percentage share, the amount and the property address.

10. Capital Gain

From the year 2018-19, if the assesse had a long term capital gain of more than ₹1 lakh from the investments made into listed equity shares and equity-oriented funds, than the same will be now taxable. The respective changes in regards to the same  have been made in the ITR forms".