16/10/2020
The Income-tax Department has made several changes in the ITR forms applicable for tax filing for FY 2019-20. Highlights:
Key changes in ITR1 and ITR2:
*ITR-1, taxpayers will have to provide their passport number (if they have one)
*ITR-1 asks for detailed information about your employer. Until last year, a taxpayer simply had to select the nature of employment, i.e., Government, PSU, Pensioners, Others from a drop-down menu in case of 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 the name, nature, address of the employer. According to the notified form, these details will be pre-filled automatically, once the TAN of the employer is filled by the taxpayer in ITR-1
*Given that ITR-1 is not applicable for the RNORs and the non-residents, they have to necessarily go with ITR-2 for filing their return of income
*The applicability of ITR-2 has been made more clear in as much as now it is applicable for individuals and HUF having income other than income under the head “Profits and Gains from Business or Profession”
*In a case where the ITR is filed by a representative assessee, additional information about the capacity of the representative assessee (by way of choice in a drop-down provided) has to be given
*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.
