Recently, the Indian government has notified new tax go back paperwork for FY2018-19 (assessment yr 2019-20) applicable for people, corporates, and different classes of taxpayers. The new bureaucracy contains numerous additional disclosure necessities vis-a-vis the previous yr’s bureaucracy. The modifications keep in mind the amendments made with the Union Budget 2018 inside the Income-tax Act, 1961.

The additional records being sought inside the revised tax go-back forms will now not handiest facilitate automatic cross-validation of facts via the tax department however is also predicted to quicken the manner of tax refund and assessments. All the taxpayers are mandatorily required to file their tax returns electronically except people over the age of eighty years who choose to file the tax return in paper format. This article makes a specialty of a number of the important thing points to be observed by using individual taxpayers while submitting their tax returns this year.

Identifying the best shape

The first step would be to perceive the tax return shape relevant for a person taxpayer, as under:

ITR-1 (SAHAJ): resident and primarily resident (ROR) people having total earnings of as much as ₹50 lakh, having earnings from salaries, one house property, income from different sources, and agricultural profits up to ₹5,000. Non-residents can’t record ITR-1, no matter their supply or quantum of earnings.

Income tax

ITR-2: Individuals now not having earnings from earnings and gains of business or profession (who can’t use ITR-1).

ITR-3: Individuals having earnings from profits and profits of commercial enterprise or career.

ITR-4 (SUGAM): Individuals, and corporations (aside from LLPs), being a resident, having overall income as much as ₹50 lakh, and having income from enterprise and career computed below the presumptive taxation scheme.

Key modifications in ITR forms


The great exchange in shape ITR-1 is the restrict on its applicability for the following resident individuals:

-A character who’s a director in any enterprise;

-A character who has held any unlisted fairness stocks at any time for the duration of the year;

-A man or woman who has claimed a deduction towards costs incurred for earning earnings from ‘different sources’ aside from deduction for the circle of relatives pension; and

-An individual who’s assessable for any income on which tax has been deducted at supply in the fingers of every other individual. This would be applicable in instances where the profits earned by using the taxpayer’s spouse or another individual are required to be clubbed within the taxpayer’s hands, and there was a tax deduction at supply on such profits.

The above resident individuals will now have to document the precise form ITR-2 / other tax return form, as applicable, no matter the number of their total earnings at some point of the 12 months. Like remaining years, resident people who’ve foreign assets (consisting of the economic hobby in any entity) or signing authority in any account positioned outside India can be required to file ITR-2.

ITR-1 has additionally delivered sure additional disclosure requirements towards profits from residential property in which taxpayers are required to specify whether or not the house became self-occupied all through the 12 months or was let loose on lease. Individuals submitting ITR-1 are now additionally required to disclose exempt profits consisting of dividends; agricultural profits underneath ₹5,000; quantity obtained under a lifestyles insurance coverage or from a regarded provident fund, etc.


Significant adjustments have been brought within the new shape ITR-2 that will likely impact an extensive taxpayer phase. Detailed disclosure has been delivered with admire to taxpayer’s residential popularity in India. Apart from specifying the status as ‘resident,’ ‘resident but not-regular resident’ or ‘non-resident,’ taxpayers also are required to pick out the circumstance primarily based on which the residential reputation has been determined, i.e., as per the number of stay days in India in the applicable tax 12 months and previous years.

Non-resident individuals are now required to say their u. S. Of residence, in conjunction with their taxpayer identity, wide variety in such jurisdiction. Non-residents who are Indian residents or persons of Indian foundation are also required to mention the entire period of stay in India for the yr and inside the preceding 4 years.

Individuals who are administrators in any business enterprise are required to offer the call of the organization, its permanent account number (PAN), director identity variety (DIN), and data on whether the business enterprise’s shares are listed or unlisted. Individuals protecting unlisted equity stocks at any time for the duration of the yr are required to disclose the name of the organization whose stocks are held, the organization’s PAN, a wide variety of stocks held, shares obtained/bought for the duration of the 12 months along with their value of acquisition/sale attention.

The scope of reporting foreign belongings has been elevated to include details of overseas depository and custodial bills, overseas fairness, and debt hobby held at any time throughout the relevant period. Additional disclosure requirements specify long-time period capital gains from the sale of fairness stocks or gadgets of equity-orientated funds. In case of capital gain from the switch of immovable assets, extra info regarding the client and belongings must be disclosed. In the case of agriculture earnings, agricultural land, its measurement, and many others are actually required to be disclosed.


The additional disclosures mentioned from ITR-2 touch on residential reputation, directorship in corporations, funding in unlisted fairness stocks, income from residential property and different sources, overseas assets, etc. Have additionally been included in Form ITR-three. Other changes delivered in shape ITR-3 encompass a disclosure of call and PAN of partnership firms. The individual taxpayer turned into a companion during the yr, information of audit beneath some other statutory regulation.

The new shape ITR-3 bifurcates the prevailing income and loss account into buying and selling account, production account, and profit and loss account that allows you to be relevant for taxpayers who have profited from business or profession on. The form additionally seeks details of an annual fee of outward supplies per the products and services tax (GST) returns filed.