9 Key changes in Income Tax Return (ITR) Forms for AY 2019-20

Income Tax Return (ITR) Forms have been released by the Central Board of Direct Taxes (CBDT) a few days back. As it happens every year there are some major and minor changes in these forms. These changes are mainly due to 2 factors:

  1. To reflect the new tax law changes that were introduced/changed in FY 2018-19 (AY 2019-20)
  2. To collect more information about tax payer so that the IT department can have better assessment of them.

Tax Rules changes in FY 2018-19 (AY 2019-20)

Before we look at the changes in the form, lets briefly recall the rules that were changed/introduced in FY 2018-19.

  • Standard Deduction of Rs 40,000 for Salaried and Pensioners. Transport Allowance & Medical Reimbursement No more tax exempt for salaried
  • Cess hiked from 3% to 4% (renamed as Health & Education cess)
  • Rs 50,000 interest income for senior citizens tax exempted u/s 80TTB
  • 10% tax on long term capital gains (above Rs 1 Lakh) on stocks & equity based mutual funds
  • Also 10% dividend distribution tax on dividend paid by equity mutual funds
  • Health Insurance Premium Tax exemption limit increased to Rs 50,000 u/s 80D for senior citizens
  • Increased deduction for medical treatment u/s 80DDB for senior citizens up to Rs 1 lakh

For more details: 13 Important Changes in Tax Rules from FY 2018-19

Changes in ITR Forms for AY 2019-20 (FY 2018-19)

We list down the important changes in the ITR forms to be used for AY 2019-20 (FY 2018-19)

1. Some Tax Payers cannot file ITR 1 this year:

Following 2 categories of tax payers who used to file ITR 1 until last year have to file ITR 2 for AY 2019-20:

  1. Individuals being a director in a company
  2. Individuals who have investment in unlisted equity shares at any time during the FY

ITR 2 Form asks for more discloses from the above tax payers.

Download: Income Tax Calculator for FY 2018-19 [AY 2019-20]

Director in a company has to provide name of company, PAN, DIN and if the company is listed or not as shown in the table below:

ITR 2019 - Details in case Director in a Company in ITR Form 2

ITR 2019 – Details in case Director in a Company in ITR Form 2

For investment in unlisted equity, people need to provide details of the company, PAN and transactions done in the financial year.

ITR 2019 - Details of investment in unlisted equity shares

ITR 2019 – Details of investment in unlisted equity shares

2. Salary Structure In ITR Form (Schedule S):

ITR Form asks for breakup of salary. Thankfully this time they have aligned it to Form-16 fields. Last year a lot of people found it difficult to understand and there were issues.

Salary Structure changed and Standard Deduction in ITR Form

Salary Structure changed and Standard Deduction in ITR Form

The row reflecting standard deduction also appears in the form as it was introduced in FY 2018-19. The limit for the same has been increased to Rs 50,000 from FY 2019-20.

Also Read: How to Pay 0 Income Tax on Rs 16 Lakh Salary?

3. Additional disclosure for income from Other Sources (Schedule OS):

For income from Other Sources, the ITR Form asks for more details like income from Savings Account, from deposits (banks/post office), from income tax return, etc. This was required as Section 80TTA only exempts interest income up to Rs 10,000 from savings account but many people were misusing the same.

Details about Income from Other Sources in Schedule OS in ITR Form

Details about Income from Other Sources in Schedule OS in ITR Form

4. Additional Deduction 80TTB for Senior Citizens (Schedule VI-A):

Section 80TTB had been introduced in FY 2018-19 and it exempts Rs 50,000 interest income for senior citizens. The same is now reflected in ITR Form. Just to remind in case you take benefit 80TTB, you cannot take benefit of 80TTA.

80TTB for Senior Citizens included in ITR Form

80TTB for Senior Citizens included in ITR Form

Also Read: Highest Interest Rate on Bank Fixed Deposits 

5. Residential/NRI Status:

The new ITR Forms ask about the number of says individuals have stayed in India in last financial year. This is to determine the residential status – NRI, Resident Indian, etc. For NRIs, POIs he/she needs to report the total period of stay in India during FY 2018-19 and during the preceding four years.

ITR 2019 - Additional Disclosure about Residential Status in ITR Form 2

ITR 2019 – Additional Disclosure about Residential Status in ITR Form 2

Also Read: NRE Vs NRO Accounts for NRIs

6. Long term Capital Gains on Shares/Mutual Funds (Schedule CG):

Long Term Capital gains on equites and equity based mutual funds were introduced in last financial year. The gains would be taxed at 10% in case it exceeds Rs 1 lakh. The ITR forms have been modified accordingly to mention these capital gains.

Long Term Capital Gains on Equity and Mutual Funds in ITR 2019

Long Term Capital Gains on Equity and Mutual Funds in ITR 2019

Also Read: Calculate Tax on Equity and Debt Mutual Funds

7. Details about Buyer of Property (Schedule CG):

In case taxpayer has sold any immovable property in the financial year, he needs to furnish the details of the buyer such as Name, PAN, Percentage share, address of the property, etc.

ITR 2019 - Property Buyer Details to be provided in case of Property Sale

ITR 2019 – Property Buyer Details to be provided in case of Property Sale

Download: Capital Gains Calculator for Property

8. Additional disclosure of Agriculture income (Schedule EI):

Taxpayers with agriculture income of more than Rs 5 lakhs, have to fill up ITR 2. ITR 2 asks for additional details such as the name of the district with pin code, measurement of agricultural land, whether owned/leased, etc. under exempt income schedule.

Additional Disclosure for Agriculture income in ITR FormAdditional Disclosure for Agriculture income in ITR Form

Additional Disclosure for Agriculture income in ITR Form

Also Read: 25 Tax Free Incomes & Investments in India

9. More detailed disclosure on foreign assets (Schedule FA)

This year the disclosures regarding foreign assets have increased in the ITR form. Now it also includes details of foreign depository accounts, foreign custodian accounts, equity or debt interest in a foreign entity and foreign cash value insurance contract or annuity contract. 

ITR 2019 - More details about Foreign Assets required in ITR Form

ITR 2019 – More details about Foreign Assets required in ITR Form

New ITR Forms for AY 2019-20:

Everyone filing their income tax return must be aware of the above changes in the form for ITR (Income Tax Return) AY 2019-20 and be careful while filling the same to avoid any complications/tax notices in future. 

 


9 thoughts on “9 Key changes in Income Tax Return (ITR) Forms for AY 2019-20

  1. BIKAS BISWAS says:

    Sir,
    I have earned some pension amount from lici annuity plan for the FY 2018-19. I understand that the amount is fully taxable. Under which head of INCOME I can show the amount in itr1 for AY 2019-20?

    • Annuity payout will come under “income from other sources”

      • BIKAS BISWAS says:

        Many thanks ,Sir, for your prompt reply. But in the itr1 for AY 2019-20…..there are many sub-heads under “income from other sources”…..like….Savings Bank interest, Interest from deposits in Bank/ Post Office/Co operatives,Family Pension, Others etc. Which sub-head of “Income from other sources” is appropriate to show the annuity income?
        Regards,

      • BIKAS BISWAS says:

        Many thanks,Sir, for your prompt reply. But in ITR1 for AY 2019-20 there are many sub-heads under “Income from other sources”….like Savings bank, Deposit interests in Bank/Post office/Co-operatives, Dividents, Family pension,Others etc.
        Which sub-head of “Income from other sources” will be applicable to show the pension amount received from LICI annuity plan?
        Regards.

  2. Hi, I am a salaried profession. Apart from this i do trading of shares also. I have done Intraday, short term and long term trading. pls let me know which ITR form i have to use for filling AY2019-20. I always used ITR1 in past,.

    • If you trade in shares – you would have long/short term capital gains and hence use ITR 2

      • BIKAS BISWAS says:

        Sir,
        I am so grateful for your clear and prompt reply.
        I have another query. In ITR1 for AY 2019-20 there are many sub-heads under “Income from other sources”….like interest received from savings bank, deposit A/C, family pension,dividends, others etc. Under which sub-head of “Income from other sources” does the annuity received from LICI fall?
        Regards.

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