TAG Investments and team are professionals dealing in taxation related matters. We have in-house Chartered Accountants and Company Secretary dealing in end-to-end income tax matters for individual and corporate clients.
The income tax department has notified I-T return forms for individuals and companies for the assessment year 2019-20.The time has come for all of us to start filing our income tax returns (ITR). This year it becomes all the more important to file it on time as there is a penalty for missing the deadline. To make the process of filing your returns easier, it is always better to keep all the necessary documentary proof ready and handy like Bank Statement, form 16, Form 16A/16B/16C, Salary Slips, Interest certificate from banks & post office, Tax saving investment proofs, Home loan statements , Aadhaar Card, Form 26AS etc. Without it, filing your tax return could be difficult.
For available deductions you can refer our article on list of income tax deduction
Income Tax Slab Rates for FY 2018-19 / AY 2019-20
The income tax slabs & rates are categorized as below
- Individual resident aged below 60 years.
- Senior Citizen (Individual resident who is of the age of 60 years or more but below the age of 80 years at any time during the previous year) &.
- Super Senior Citizen (Individual resident who is of the age of 80 years or more at any time during the previous year).
| Income Slabs | Individual below 60 years | Senior Citizens (60 years or above, but below 80 years) |
Super Senior Citizens (80 years or above) |
| Upto 2,50,000 | Nil | Nil | Nil |
| INR 2,50,001 to 3,00,000 | 5% | Nil | Nil |
| INR 3,00,001 to 5,00,000 | 5% | 5% | Nil |
| INR 5,00,001 to 10,00,000 | 20% | 20% | 20% |
| Above INR 10,00,000 | 30% | 30% | 30% |
Income tax return filing – which form is applicable to you?
Who can file New ITR 1 (Sahaj) Form For Assessment Year 2019-20?
ITR-1 Form can be used if you have
- Salary or Pension Income
- Income from one house property(excluding cases where loss is brought forward from previous years)
- No business income / no Capital gains
- No asset in foreign country or no income from a source outside India
- Agricultural income which is less than Rs 5,000
- Income from other sources like FD/Shares/NSC etc.,
- No income from lottery or horse racing.TR Form-1 (Sahaj) can be filed by an individual who is resident other than not ordinarily resident,having income upto Rs 50 lakh and who is receiving income from salary, one house property / other income (interest etc.).
Who can file New ITR 2 Form for Assessment year 2019-20?
ITR2 form can be filed by an Individual or Hindu Undivided Family (HUF). This form can be used if you have;
- Salary or Pension Income
- Income under the head ‘Capital Gains’
- Income from multiple houses
- No business / professional income under any proprietorship
- An asset in foreign country or income from a source outside India
- Agricultural income of more than Rs 5,000
- Income from lottery or horse racing
- If your income is more than Rs 50 Lakh, ITR 2 has a Schedule AL requiring assessee to declare their assets and liabilities at the end of the fiscal.
Who can file New ITR 3 Form for Assessment year 2019-20?
The Current ITR3 Form is to be used by an individual or a Hindu Undivided Family who have income from proprietary business or are carrying on profession.This ITR covers all kind of businesses and professions irrespective of any income limit. Assessee can also report his income from salary, multiple house properties, lottery winnings, capital gains, speculative income i.e. horse race in ITR3 together with the Business Income.
Who can file New ITR 4 Form for Assessment year 2019-20?
The current ITR 4 is applicable to individuals and HUFs having income from a business or profession and who have opted for the presumptive income scheme as per Section 44AD ,Sec 44ADA and Section 44AE of the Income Tax Act. However, if the turnover of the business exceeds INR 2 crores or INR 50 Lacs , the taxpayer will have to file ITR-3. Please note this ITR form is applicable if conditions mentioned are satisfied else ITR 3 has to be filed.
- No Capital Gains
- Agricultural Income which is less than Rs 5000
- No asset in foreign country or no income from a source outside India
- Income from one house property
- Income from other sources
Who can file New ITR 5 Form for Assessment year 2019-20?
ITR 5 is for firms, LLPs (Limited Liability Partnership), AOPs (Association of Persons) and BOIs (Body of Individuals)
Who can file New ITR 6 Form for Assessment year 2019-20?
For Companies other than companies claiming exemption under section 11 (Income from property held for charitable or religious purposes)
Important changes in ITR forms
Buyer’s information is required in case of transfer of immovable property:
For ITR 2, 3, 5, 6
If assessee reports capital gain, from transfer of an immovable property, in income-tax return, it would be mandatory for him to furnish the following information about the buyer:
- Name of buyer
- PAN of buyer
- Percentage share
- Amount
- Address of property
- Pin code
It is mandatory for the assessee to furnish the PAN of buyer in ITR form if tax has been deduced under section 194-IA or PAN is quoted by buyer in the registration documents.
PAN is otherwise a mandatory document to buy or sell an immovable property if the stamp duty value or the sales consideration exceeds Rs. 10 lakhs.
Reporting of salary income on gross basis
For ITR 1, 2, 3, 4
The new ITR forms have changed the mechanism of reporting of salary income. Up to Assessment Year 2018-19, an individual was required to report salary amount excluding all exempt and non-exempt allowances, perquisites and profit in lieu of salary. These items were reported separately in same schedule and had no impact on calculation of net salary income.
The new ITR forms have changed this reporting mechanism, which is now in sync with the columns of Form 16 (TDS Certificate issued by the employer). Now, from Assessment Year 2019-20, an individual has to mention his gross salary and then the amount of exempt allowances, perquisites and profit in lieu of salary shall be deducted or added to arrive at the taxable figure of salary income.
Penalty for not filing ITR on time
If an income tax return is filed after the due date (31st July, 2019) but on or before the December 31 of the assessment year, there will be a fine of INR 5,000. If the return is filed after December 31, there would be fine of INR 10,000. After March 31, the returns cannot be filed. However, in case the total income is less than Rs 5 lakh, the penalty should not exceed INR 1,000.
Disclaimer– Income tax rules subjected to change from time to time as per Govt. latest notification/circulars. Do consult your tax advisors before filing your return.
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