ITR-1 and ITR-2 AY 2019-20 released

Income-tax Department has released new ITR forms for the Assessment Year 2019-20. There are various changes in these forms as compared to the last assessment year and also some new information is required by the Department. Here are some highlights for your better understanding.

Keynotes for ITR-1

1. The ITR-1 form will be applicable to resident individuals only having an Income up to Rs.50 lakh from salary, one house property and from other sources such as interest income, etc.
2. As per the notified form, this ITR form can't be used by a person who is either a director of a company or has invested in unlisted equity shares.
3. ITR-1 includes an option of standard deduction. While submitting ITR, the maximum amount of standard deduction that can be claimed by a person is Rs.40,000 for the financial year 2018-19, in accordance with the forms notified by the Central Board of Direct Taxes (CBDT).
4. In ITR-1, if you're having a house then you'll need to specify whether it's self-occupied, let-out or deemed to let-out.
5. This year, you'll also have to provide details of income from other sources. Revenue from other sources includes interest income from bank account, fixed deposits, etc.
6. There is a new option to select one as a pensioner.
7. A new deduction called 80TTB has been added where a deduction of up to Rs.50,000 is allowed only to Senior Citizens on Interest on all kinds of deposits.

However, similar to last year, the individuals have to provide a break-up of their salary details as wages excluding allowances, perquisites and profits instead of wages, reported The Economic Times. The individuals will have to provide additional details of perquisites received by them from their companies and profit in lieu of salary, if any. Any allowances, which are exempted from taxation such as certain or complete quantity of house rent allowance, should also be mentioned at the ITR-1, the report added.

Keynotes for ITR-2

1. ITR-2 will be applicable to those individuals and Hindu Undivided Families (HUFs) who do not have income from profits and gains of business or profession.
2. You will be required to supply details of your residential status in ITR-2, so, whether in the fiscal year 2018-19 you're a resident, resident but not ordinarily resident or non-resident individual.
3. You'll have to specify that you're in India for 182 days or more during last year [Section 6 (1) (a)] or you were in India for 60 days or more during last year or that you've been in India for 365 days or more within the 4 preceding years [Section 6 (1) (c)].
4. In case you have held shares of an unlisted company, then you'll have to provide details like name of the business, PAN, number of shares held or obtained by you, stocks sold by you etc, in ITR-2.