The Income Tax Department had notified new income tax return (ITR) Forms (ITR-1 to ITR-7) for FY 2019-20 (01 April 2019 to 31 March 2020). The Central government has also extended the last date for filing an income tax return (ITR) for the financial year 2019-20 from July 31, 2020, to November 30, 2020.
The applicability of the ITR forms depends on the type of taxpayer and the nature of income earned by him/her. For individuals and HUFs not earning income from profits and gains of business or profession, ITR-1 or ITR-2 can be used to file return of income.
The Income Tax Department has made several changes in the ITR Forms applicable for FY 2019-20, as compared to the previous year.
Here are some key changes made in ITR-1 and ITR-2:
· In this year's ITR-1, taxpayers will have to provide their passport number (if they have one).
· One will have to fill detailed information of your employer in this year's ITR-1. From this year, those filing ITR1 will have to provide the Tax Deduction Account number (TAN) of the employer, mandatory if tax is deducted. Other details required are name, nature, address of the employer.
· For people with one house property on rent, the rent amount needs to be mentioned in the ITR-1. Likewise, for individuals with two house properties on rent need to report the same amount in the ITR-2.
· This year various schedules of ITR-1 and ITR-2 requires the assessee to furnish PAN of the second party, i.e. tenant, buyer, co-owner of the house property among others.
· In light of permissible usage of PAN and Aadhaar interchangeably, Aadhaar can now be quoted in place of PAN in these schedules.
· Given that ITR-1 is not applicable for the resident but not ordinarily residents (RNOR) and the non-residents, they have to necessarily go with ITR-2 for filing their return of income.