A taxpayer who is an individual and is resident in India and earning income up to Rs 50 Lakh can use ITR-1 to file the return.
The
income
tax return forms have been notified for the tax filings due for
AY 2019-20. The due date for filing the income tax returns for FY
2018-19 is 31 July 2019. The returns require some additional and
detailed disclosures in comparison to the income tax returns of
earlier years.
Taxpayers
need to be aware of the key changes that would impact their tax
filings.
Keep
Reading : Business
Standard
Form
ITR-1:
A
taxpayer who is an individual and is resident in India and earning
income up to Rs 50 Lakh can use ITR-1 to file the return. The form
ITR-1 can be filed for reporting income from salary, one house
property, income from other sources and agricultural income up to Rs
5,000.
Taxpayers
have to report the gross salary under income from salary i.e.,
salary, perquisites and profits in lieu of salary. The exempt
allowances have to be disclosed allowance-wise and deducted from
gross salary e.g., if a portion of the HRA has been claimed as
exempt, it’s amount should be separately reported. For income
earned from other sources, a taxpayer has to also provide detailed
break-up of incomes e.g, Interest income from savings or fixed
deposits etc.
Form
ITR-2:
ITR-2
can be used by taxpayers who are individuals and Hindu Undivided
Families (HUFs) to report all types of income other than income from
business or profession.
Resident
individuals who have total income above Rs 50 Lakh have to use ITR-2.
Also, a taxpayer who is a non-resident or a Director in any company
or has invested in unlisted equities at any time during the financial
year has to file the returns in ITR-2 even if their income is less
than Rs 50 Lakh. Such taxpayers have to disclose information on their
Directorships in various companies and details of their investment in
unlisted equity shares.
In
ITR-2, in reporting the income from salary, taxpayers need to provide
a complete break-up of the details of various components of salary.
The specifications of the amounts falling under salary, perquisites
and profits in lieu of salary have to be mentioned therein. Taxpayers
would be able to draw this information from the annexure to Form 16
provided by the employer.
Also,
an employee earning income from more than one employer during a
financial year has to provide the complete salary details (as above)
for each employer.
In
making the disclosure under ‘residential status’, taxpayer has to
furnish the details of days of stay in India in the previous year,
during the preceding four years etc.
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