Monday, April 22, 2019

Changes in ITR Forms AY 2019-20

1. If the taxpayer is a Director in a Company at any time during the tax year, the following details need to be furnished (ITR 2, 3):
(i) Name and Permanent Account Number (PAN) of the Company
(ii) Whether shares of the Company are listed or unlisted
(iii) Director Identification Number (DIN) of such person

2. If the taxpayer is a Partner in a Firm, then the name and PAN of the Firm need to be disclosed separately (ITR 5, 7).

3. Enhanced Reporting in case of Transfer of Immovable Property - such as name and PAN of the buyer, address of property and in case of more than one buyer, percentage share and amount paid by each buyer needs to be reported (ITR 2, 3, 5, 6).

4. Break-up of Interest Income earned needs to be bifurcated into interest earned from savings bank, deposits, income tax refund, interest in the nature of pass-through income or others. (ITR 2, 3, 5, 6, 7)

5. Break-up of certain Specified Incomes such as dividend income, winning from lotteries, puzzle, races etc. which are taxed under Income from Other Sources - The break-up period is aligned to the due dates of payment of advance tax (ITR 2, 3, 5, 6, 7).

6. Break-up of monetary Donations made in cash and other mode - Monetary donations made by taxpayer and eligible for deduction under section 80G of the Income Tax laws need to be bifurcated between donation made in cash or in any other mode (like cheque or electronic mode). (ITR 2, 3, 4, 5, 6)

7. Enhanced reporting in relation to Foreign Assets located outside India - instead of information about foreign bank accounts held, the new ITR forms require details of following assets held by resident taxpayers at any time during the tax year in Schedule FA dealing with foreign assets and income from any source outside India (ITR 2, 3, 5, 6, 7)
(i) Details of Foreign Depository accounts
(ii) Details of Foreign Custodial accounts
(iii) Details of Foreign Equity and Debt interest
(iv) Details of Foreign Cash Value Insurance Contract or Annuity Contract

Under each asset category, there is further reporting requirement such as details of country name and code, name and address of institution, account number, date of opening the account, peak balance during the tax year, closing balance, amount of interest/ amount paid/ credit. In case of insurance contract, cash/ surrender value of contract needs to be reported.

8. Enhanced reporting in Exempt Income schedule
(i) If net agricultural income exceeds Rs. 5,00,000; the following details need to be reported separately for each agricultural land (ITR 2, 3, 5, 6)
- Name of district along with pin code where agricultural land is situated
- Measurement in acres
- Whether the land is owned or leased and whether it is irrigated or rain fed
(ii) income is not chargeable as per Double Taxation Avoidance Agreement (DTAA)
(iii) it is pass-through exempt income (ITR 2, 3, 5)

9. Furnishing of PAN/ TAN of Tenant is mandatory if TDS credit on rent income is claimed by the taxpayer (ITR 2, 3, 5, 6, 7)

10. Insertion of Manufacturing Account and Trading Account - Statement of Profit and Loss has been bifurcated into Manufacturing Account, Trading Account and Profit and Loss Account. Certain additional details need to be furnished in the Manufacturing Account such as details of direct wages, direct expenses and factory overheads. (ITR 3, 5, 6).

11. In case regular books of accounts are not maintained - details of Gross Receipts as bifurcated between receipts through specified banking modes and any other mode to be reported.

12. Date of Commencement of Business to be disclosed by Companies

13. In case of Companies, Loans and Advances given and received - party wise details along with opening and closing balance, amount received and repaid during the year, rate and amount of interest

14. In case of Companies, land or building or both (whether residential or not), other assets such as motor vehicle, aircraft, yacht, jewelry, archaeological collections, drawings, painting, sculptures or any work of art or bullion - date and cost of acquisition, purpose of use needs to be disclosed.