One of the best ways to be in line with with Income Tax Return (ITR) filing requirements is to do with the filing before due date. It surely saves a lot in terms of penalties and even anxieties. The deadline for ITR filing is July 31, 2019 for financial year 2018-19. With barely three months left, a taxpayer might want to be alert and take care of how she or he files his tax returns as certain changes that have been made by the I-T department this year. ITR is a must procedure that every taxpayer should follow. ITR has a prescribed set of forms which contains details of income earned by a person in a financial year and taxes need to paid on such income. This income must be communicated to the Income-Tax department through ITR filing. Apart from this, ITR also allows carry-forward of losses and claims for refunds from the Income-Tax department. Different forms of returns of income are prescribed depending on Status and Nature of income. A number of changes have been carried out by the taxman and ITR filers must ensure they follow these rules or else they will be in trouble. There have been six changes effected, which have changed the way you file your ITR. Let’s find out!

1. Form 16!

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An employer issues this Form. It contains the evidence of TDS which is deducted from your salary and deposited with authorities. Issued annually on or before June 15 of every year, the Form contains information needed to file your ITR.

There are two parts of Form 16 - Part A and Part B. Under Part A, details like name and address of your employer, TAN, PAN of both employer and employee and summary of tax deducted and deposited annually is included. Meanwhile, Part B involves details of taxable salary, breakup of section 80C deductions, TDS, tax payable. 

The part B of Form 16 has been changed. A new section 10 has been added, which covers information of travel concession, death-cum retirement gratuity, pension, leave salary encashment and house rent allowances. 

Apart from this, new columns have been created for any other exemptions under section 10. Also, new sections for new columns for deductions under sections like 80E,  80G, 80TTA and others have been made. 

2. Form 24Q! 

When an employer pays salary to an employee, the Former is required to deduct TDS under section 192 of Income Tax Act. On quarterly basis, the employer needs to file salary TDS return in Form 24Q. 

The new Form 24Q includes details like Deductee type (Senior Citizen, Super Senior Citizen, Others), Income (or admissible loss) from house property reported by employee offered for TDS as per section 192 (2B, PAN of lender, if interest on housing loan is claimed under section 24(b), Travel concession or assistance under section 10(5) and PAN of landlord, if exemption is claimed under section 10(13A) among others. 

Take note that, if a employer doesn’t deduct TDS or deducts TDS at a lower rate, he or she will have to provide the reasons for such non-deduction or lower deduction.

It has to be noted that various details are similar in both the new Forms. 

Changes in ITR forms are also made. Here's what you need to know as per ClearTax.

3. ITR-1 form!

ITR-1 form is applicable to resident individuals, except for the director of a company or the holders of unlisted equity shares. Total income must not exceed Rs 50 lakh. An additional row has been provided for claiming a standard deduction of Rs 40,000 for FY 2018-19. 

The taxpayer is also required to furnish income-wise details, like interest income from savings account, bank deposits, income tax refund, family pension income and others, under ‘Income from other sources’ column of new ITR-1.  If there are allowances, exempted from tax partially or fully, then their amount should be mentioned separately in ITR-1. 

4.ITR-2 form!

Individuals and Hindu Undivided Families (HUFs) who do not have income from profits and gains from business or profession can file their returns with ITR-2 form. 

As per the newly notified ITR-2 form, taxpayers will be required to specify their residential status of the FY 2018-19. An individual can be considered as a resident, ordinary resident or non-resident in the financial year for income tax purposes. Detailed information regarding days present in India must be provided to satisfy residential status.

Additionally, in the column for 80G the amount must be segregated into cash and other modes of contribution.

5. ITR-4 form!

Taxpayers with a cumulative income of up to Rs 50 lakh and those who are Resident, or Ordinarily resident of India can file ITR-4 form. Directors or those who held unlisted equity shares at any time during the financial year 2018-19 can no longer file returns with ITR-4 form; they have to file ITR 3 form.

The taxpayers having a business of plying, hiring and leasing goods carriages and have opted for presumptive taxation scheme (Section 44AE) will now have to provide details, such as registration no. of goods carriage, whether owned/leased/hired, tonnage capacity of goods carriage (in MT) etc.in new ITR-4. 

6. Other changes!

Only taxpayers above the age of 80 years filing ITR-1 or ITR-4 are eligible for paper filing facility. Everyone else must mandatorily file their returns online. Also, taxpayers with income up to Rs 5 lakh and seeking a refund are not allowed to file their ITR in the paper format starting returns for FY 2018-19.

Further, the Income Tax department has banned directors, investors for filing ITR in regards to their investment in unlisted companies. They are barred from filing ITR forms Sahaj and Sugam. 

Reason behind such changes, is to make ITR filing more transparent and effective. The forms have become more enhanced and cumulative. In case of form 16 and 24Q, these changes will make the department give more knowledge of tax deducted at source (TDS) made by your employer.