Major Changes in New ITR forms for Individuals for AY 2019-20
A) Income from salary
- The Finance Act, 2018 introduced standard deduction up to ₹ 40,000/- or the amount of salary received whichever is less in place of transport allowance and medical reimbursement in ITR-1,2,3 & 4.
- TAN (Tax Deduction and Collection Account Number) of the employer is required to be furnished if tax is deducted by the employer on the said income from salary in ITR-2 & 3.
B) Income from House Property
- The option of deemed let out property shall be selected in respect of that house property which has not been claimed as self-occupied OP by the assessee.
- ITR 1 & 4 can be used only in case of income from only one house property.
- Furnishing of PAN of tenant is mandatory, if tax is deducted u/s 194-IB and TAN of tenant is mandatory if tax is deducted under section194-I.
C) Income from Capital Gain
- LTCG will be taxed @ 10% if it exceeds 1 Lakhs in case of securities being equity shares, units of equity mutual funds or units of business trust by inserting section-112A for AY 2019-20
- Sec-54EC exemption only allowed on land, building or both-The scope of this exemption is significantly curtailed and now it is allowed only if long term capital gain arising from transfer of an immovable property-Land, building or both and is invested in specified bonds. The time limit of such bonds is increased to 5 years from 3 years earlier in ITR-2,3,5 & 6.
- Mandatory to furnish the following information about the buyer, if assessee transfer immovable property: -Name of the buyer, PAN of the buyer, Percentage share, Amount, Address of property, Pin code.
D) Chapter VI-A deductions and other amendments affecting individuals
- Section 80D of the Act has been amended, to provide the deduction in respect of Senior Citizen to Rs. 50,000/- instead of ₹ 30,000/.
- Under section 80DDB, the monetary limits for medical treatment of specified diseases (certain critical illness, as specified in Rule 11DD) is increased to ₹ 1,00,000/- in case of both senior and super senior citizens.
- Under Donation entitled for Deduction under section 80G – bifurcation is provided between donation given in cash and by other mode.