The Income Tax Department issues changes in the New ITR Forms for F.Y. 2019-20 (A.Y. 2020-21).
A taxpayer uses Income Tax Return forms to report their annual income to the Income Tax Department.
Earlier, the ITD had released ITR 1 and ITR 4 for FY 2019-20 in January, 2020. Changes introduced in the initial release are rolled back. Meaning, you no longer need to enter the following details like:
- Passport Details
- TAN of employer
- Tenant Details
Check out all the ITR changes, announced by the ITD in January 2020 that are no longer applicable.
What Changed in the New ITR Form for F.Y. 2019-20 (A.Y. 2020-21)?
Changes Applicable to all ITR Forms for FY 2019-20
- Enter the amount of transactions, if you during the financial year
- Deposited amount above INR 1 cr in one or more Current Account
- Spent more than INR 2 Lakh on a foreign trip for yourself or on someone’s behalf (eg: spouse, parents, children, etc.)
- Paid electricity bill above INR 1 Lakh
- Details of Investment
Due to the Covid-19 situation, the Income Tax Department had extended the due date to make tax saving investments under Chapter VIA from 31st March 2020 to 30th June 2020 for FY 2019-20.
You are required to add the amount of investment made during the time the FY 2019-20 and during the Covid-19 extension.
ITR Form Changes for ITR 2 & ITR 3
Usually, when a taxpayer has income from capital gains they file ITR 2, and ITR 3 when they earn income from business and profession.
- The details of investments should be reported under 2 sections Part A and Part B for ITR 2 and ITR 3. Part A for Chapter VIA deductions and Part B for Capital Gains and deductions u/s 10AA.
- Aadhaar Card can be used in place of PAN Card in the following:
- For House Property, when reporting
- Co-owner
- Tenant
- For Capital Gains, when reporting Buyer of the Asset
- When TDS is deducted as per Form 16 A (TDS deduction under for 26Q / 27Q for professionals) or Form 16B (Form 26QB for sale of property) / 16 C (Form 26QC for Payment on rent)
- For House Property, when reporting
What are the types of ITR forms?
ITR 1 (Sahaj)
It is the simplest income tax return form. It can be filed by:
- Indian Resident (check your Residential status as per Income Tax)
- Salaried Individuals
- Individuals earning income from 1 house property (eg: Rent)
- Individuals earning income from other sources like savings account interest, Fixed Deposit interest, etc.
- Income is less than INR 50 lakh for the financial year
ITR 2
Individuals or HUFs who do not have any business and professional income can file ITR-2 .
4. In Details of Tax Deducted at Source (TDS) on Income [As per Form 16 A issued or Form 16B/16C furnished by Deductor(s)], the taxpayer can add Aadhar Card of Deductor instead of PAN/TAN.
ITR-3
ITR 3 is filed by Individuals and HUFs having income from the business & profession and in case tax audit is applicable.
ITR 4 (Sugam)
Taxpayers who have opted for the presumptive taxation scheme can file for ITR 4, including:
- Indian Residents- Individuals, HUFs and firms (other than LLPs) (check your Residential status as per Income Tax)
- Businesses and Professionals under the presumptive taxation scheme
- Income is less than INR 50 lakh for the financial year
The PDFs for the New ITR Forms for F.Y. 2019-20 have been released, ITD usually release schemas/utilities few days/weeks after launching forms.
Stay tuned!
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Hey @TeamQuicko
Thanks for the blog! Just one quick question - Why do we have to report a quarterly breakdown of Dividend Income under IFOS?
Thank you!
Hey @TanyaChopra
This quarterly breakdown of Dividend Income under IFOS will help to calculate and determine penalty u/s 234C for the delay in payment of Advance Tax.
Hope this helps!
I had received dividend recently but I had noticed that TDS had been deducted. any idea as to why has it happened and is there a way I can claim this TDS?
Hey @HarshitShah
After the introduction of Budget 2020, dividend income is now taxable in the hands of the shareholder; and is also subject to TDS at 10% in excess of INR 5000 u/s 194 & 194K. Foreign Dividend is taxable at slab rates. TDS is not applicable to such dividends. The taxpayer should report such income under the head IFOS in the ITR filed on the Income Tax Website.
Hope this helps!
Hey @HarishMehta
Yes, dividend income is now taxable from FY 2021-22 onwards and it has to be reported under the head of IFOS.
You can read more about it here: