New income tax returns (ITR) forms Alert!: 5 things you must check or do now

Restrictions in Income Tax Return (ITR 1) form

Eligibility for the Income Tax Return (ITR 1) form has become more restrictive. Till FY 2018-19, resident individuals were allowed to sue the ITR 1 form if the person was a salaried one, their income from one owned house, income from other sources and the net taxable income was below Rs 50 lakh. So, in earlier case, a taxpayer was allowed to use ITR 1 if s/he had income from business or taxable capital gains. A taxpayer was not allowed to use ITR 1 if s/he had any asset overseas, signing authority for an overseas account or income from overseas. Similarly, a taxpayer was not allowed to use ITR 1 if one was claiming tax benefits paid overseas or having an income of above Rs 50,000 from agriculture.

Now, from 1st of April 2019, some more restrictions have been imposed on certain individuals so that they can't use ITR 1. Now, if one is a director in a listed or non-listed company, or one had invested in a non-listed company in the previous financial year, he or she can't be eligible to use the ITR 1. To avail ITR 1, the investment has to be in any private limited company or in any public limited non-listed company.

Those people whose income is inclusive of any other person, who has availed tax deduction benefit, can't use ITR 1 for FY 2019-20. In fact, if one is offering any income under section "Income from other sources" and claims expenditure in regard to such income, one can't use ITR 1 in such case too. Photo: PTI

Restrictions in Income Tax Return (ITR 4)

The I-T Dept has made some changes in the eligibility criteria for ITR 4 use. The ITR 4 is used for any business income on presumptive basis. Till FY 2018-19, there was no monetary restriction in regard to total income for ITR 4 users. From now onwards, one can't use ITR 4 if his or her income exceeds Rs 50 lakh. In such a case, one will have to use ITR 3 form. Earlier, even non-residents weere allowed to use ITR 4, but from this year, only resident individuals are allowed to use ITR 4, provided they fulfill other criteria. Apart from this, additional restriction being applied in ITR 1 have been applied in ITR4 too. From this year, one will not be eligible to use ITR4 if he or she has any brought forward losses or losses to be carried forward or have more than two house properties to their name. Photo: PTI

Furnishing additional Income Tax Return (ITR 2 or ITR 3) information

Those individuals, who are going to file ITR 2 or ITR 3 will have to provide the history of their stay in India as it would help ITD to determine their residential status for income tax purposes. Moreover, in case one derives any rental income from a residential property on which tax has been deducted, one have to provide details of TAN/PAN of the tenant for claiming the credit for the tax deducted by the tenant. Likewise in case any tax has been deducted by the buyer in respect of sale of any immovable property sold by tax filer, he or she will have to mandatorily furnish details of the PAN of the buyer for claiming the TDS credit. Photo: PTI

Change in Income Tax Return (ITR) filing process

Till FY 2018-19 only two category of taxpayers were allowed to file ITR in physical form. This included individuals who were above 80 years of age. The other category included individual tax payers whose taxable income did not exceed Rs 50 lakh and who were not claiming any refund for the excess taxes paid/deducted. Now only the very senior citizen individual taxpayers using ITR1 and ITR4 will be entitled to file physical returns. All other individuals will have to file ITR electronically. Photo: PTI

Know your Income Tax Return (ITR) form

If you were director of a listed or non-listed company or had invited in a non-listed company in the previous financial year, you cannot use ITR-1. Similarly, one can't use ITR 4 if his or her taxable income exceeds Rs 50 lakh. Photo: PTI