Again, April 2019 is a beginning of new financial year. It will be great if we take notes of important Income Tax Filing requirements. Let’s not wait for this financial year to end and make your tax planning in hurry. Below are the important changes marked in the budget 2019.
1. Recognition of fraud directors and companies:( ITR 1, 2, 3, 4)
Recently government took a great initiative to control the black money and fraud companies. One of these kinds of initiatives are there to identify the fraud directors who don’t even know that they are directors in a company. consequently, the government has made it compulsory for every director of company to e-file KYC form DIR 3, or else directors DIN (Director Identification Number) will be deactivated. Now, Government also made changes in Income Tax Return forms to recognize the directors and companies are fraud or not.
The director of company cannot use ITR-1 and ITR-4 for income tax return filling. Director need to use ITR 2 or ITR 3. Moreover, if an individual was a director of any company in last year, he needs to provide the information as follow:
a. company Name
c. Shares of the company (whether listed or unlisted)
d. DIN (Document Identification Number)
2. Investing in unlisted companies: (ITR 2, 3, 5)
Company issues shares at a price which is less than FMV (fair market value). And if the issue price passes Rs. 50,000 then the difference is charged to tax in the hands of the shareholders under the head income from other sources.
So as to maintain the check on issue of shares by a thoroughly kept companies and investment made that decision by shareholders, the new norms are now inserted in new ITR forms to pursue the following details in terms of unlisted equity shares kept at any time while the previous year by an assessee :
a. Company Name
b. Company PAN
c. Number and cost of attainment of shares kept in the starting of year
d. Number of shares, face value, purchase price and date of purchase of shares attained throughout the year.
3. Salary Income Report on gross basis: (ITR 1, 2, 3, 4)
Now the mechanism of reporting of salary income are changed by new ITR forms. In assessment year 2018-19, every individual was needed to report salary amount excepting all released and unreleased allotments, perquisites and benefit in place of salary. These elements have been reported individually in same time and don’t have any influence on estimate of net salary income.
This reporting mechanism is now changed by new ITR forms, which is now in synchronised with form 16 (employer issued TDS Certificate). From now on, in this assessment year 2019-20, it gets mandatory for an individual to mention his gross salary and then the amount of exempt allowances, perquisites and profit in the place of salary will be reduced or increased to reach at the taxable figure of salary income. names of all deductions permitted under section 16 in the ITR forms are as follow:
a. Standard deductions
b. Entertainment allowance
c. Professional tax
4. For transfer of immovable property; buyers’ information is needed (ITR 2, 3, 5, 6)
If the capital gain is reported by assessee, in income tax return and transfer of immovable property it is going to be compulsory for him to furnish the buyer’s following information:
a. Buyer’s name
b. PAN of Buyer
e. Property address
f. Pin code
For the assessee it is mandatory to furnish the PAN of buyer in ITR form if tax has been deducted under section 194-IA or PAN is mentioned by buyer in the registration documents. Now, PAN is a mandatory document to buy or sell an immovable property if sales consideration exceeds Rs. 10 lakhs.
5. Nature of residuary income – ITR 1 and ITR 4
In assessment year 2018-2019, taxpayers are needed to reveal the aggregate amount of income taxable under the head other sources. despite that, from Assessment Year 2019-20, For an assessee it is mandatory to mention the kind of income taxable under the head income from other sources and the reductions asserted in respect of family pension in accordance with Section 57. Such extra disclosures have been asked by the Dept. to check that the unqualified people are not using the ITR 1 and ITR 4 for filing of income tax return.