Return of Income

Obligation to file Return of Income

Maximum amount not chargeable to tax for A.Ys 2019-2020 & 2020-21

No Obligation to File Return of Income

1. No obligation is incurred on the assessee referred in sections 115A(1), 115AC(1), 115BBA or 115D to file Return under section 139(1), if he derives no other income other than those specified in the above Sections. Further, tax deductible at source should be deducted thereon from such income.

Due Dates for filing Return of Income for A.Y. 2019-2020

Return of Income to be verified by

Forms for Return of Income for A.Y. 2019-20

Mode of Filing of return

Electronic Verification Code (EVC) is a 10 digit alphanumeric code which can be generated through e-filing portal and is valid for 72 hours. Following are the modes to E-verify Return

• EVC received in Registered Mobile number and e-mail. This option would be available for taxpayer whose total income is Less than ₹5 lakh and there is no refund.
• Aadhaar OTP i.e. Mobile number registered with Aadhaar card is linked and OTP is sent to that Mobile number and e-mail ID
• Login to e-Filing through Net Banking facility
• Download the ITR-V, sign it manually and send it to CPC through post within the time limit of 120 days from date of upload for your return to be treated as a valid return

From May 22, 2016 Electronic Verification Code (EVC) can be generated by pre-validating your bank account on the e-Filing website. All major banks have launched this facility which will facilitate its customers, who may not have a net-banking account, to e-verify their return.

Peculiarities of new returns

1. Each year new returns applicable are notified
2. New Forms are attachment less. Return is not required to be accompanied with any documents viz. computation of income, financial statements, TDS Certificates, tax challans or audit reports (other than TP Report). However subsequently the Assessing Officer may call for such documents.
3. Audit Report under sections 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), 10A, 10AA, 12A(1)(b), 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA or 115VW or notice under section 11(2)(a) need to be furnished electronically before the due date of filing the Income Tax Return (w.e.f. A.Y. 2014-15).
4. Audit Report under sections 44AB, 92E or 115JB need to be furnished electronically before the due date of filing the Income Tax Return (w.e.f. A.Y. 2013-14).
5. In case, return is transmitted electronically without digital signature, signed copy of acknowledgement generated online i.e. Form ITR-V is required to be submitted, within the specified period (currently 4 months), by ordinary/speed post to ITO, Bengaluru, (without any annexure, covering letter, etc.) or such other place as specified on acknowledgement.
6. No disallowances of pre-paid taxes shall be made by AO merely because TDS/TCS certificates or pre-paid challans not submitted along with return of Income. (Circular 3/2008 dated 21-5-2009).

Return of income claiming certain deductions or certain loss

1. Return furnished after due date, the deductions/benefits may not be available—
   1. Deductions under sections 10A, 10B, and section covered under Part C of Chapter VIA of the Act.
   2. Allowability of losses incurred under business (other than unabsorbed depreciation), capital gains and/or from owning and maintaining race horses. However, Carry forward of losses under the head House property and unabsorbed depreciation is not affected even if the return is not filed within due date.
   3. Losses of specified business (Sec. 35AD) and Speculation Business.
2. Where any loss has been duly carried forward in accordance with the provisions of section 139(3) in earlier years, there is no obligation to file the intermediary return in which the benefit of set off is claimed or loss is required to be carried forward, to be filed within the due date.
3. Section 119(2)(b) empowers the CBDT to authorise any Income Tax Authority to admit an application or claim for any exemption, deduction, refund or any other relief under the Act after the expiry of the period specified under the Act, to avoid genuine hardship in any case or class of cases. The claim for carry forward of loss in case of a loss return is relatable to a claim arising under the category of any other relief available under the Act. Refer Cir. No. 9/2015 DATED 9-6-2015.

Belated Return

• Return can be filed belatedly before the end of the relevant assessment year or before completion of assessment, whichever is earlier.
• In case return, as required by sections 139(4A) (Trusts)/139(4C) (specified Trusts, Institutions, Political Parties, etc.) is not filed on or before due date (31st July in case income before claiming exemption under section 11 exceeds maximum amount not chargeable to tax or 30th September where accounts are subject to audit), penalty of ₹100/- per day may be imposed under section 272A(2)(e).

Revised Return

• Return can be revised anytime before the end of assessment year or before completion of assessment whichever is earlier
• Even Belated Return can be Revised

Defective return

1. S. 139(9) lays that return of income would be defective in case not accompanied by the relevant annexure. W.e.f. 1-6-2013. A return which has been filed without payment of self-assessment tax along with interest shall be treated as a valid return.
2. However annexure less return scenario, return would be treated as defective in case return is not filed completely in the manner specified in the return form.
3. If the assessee fails to rectify the defects in the return of income within 15 days of intimation of defects by the Assessing Officer or specified period, the return will be treated as invalid return and the provisions of Income-tax Act will apply as if the assessee has failed to furnish the return.

Changes in ITR Forms for A.Y. 2019-20

1. Reporting of Salary income on gross basis
   • Applicable for ITR-1, 2, 3, 4
   • Mechanism of reporting of salary income changed from net basis to gross basis, as similar to Form 16. From this AY, an individual has to mention his gross salary and then the amount of exempt allowances, perquisites and profit in lieu of salary shall be deducted or added to arrive at the net figure of salary income. Further new ITR forms seek separate reporting of all deductions allowable under section 16 i.e. Standard Deduction, Entertainment allowance and Professional tax to be reported.
   • A new row has been added to enable the assessee to claim Standard Deduction.
   • Under Part A , “Pensioners” checkbox has been introduced under the “ Nature of Employment section”.
2. TAN of employer mandatory in Salary Schedule:
   • Applicable for ITR 2, 3
   • TAN (Tax deduction Account number) of the employer is required to be furnished if tax is deducted by the employer on the said Income from Salary.
3. Reporting of rental income from “Deemed let out property”
   • Applicable for ITR 1, 4
   • A new option “deemed let out” under the category of” type of property” is inserted. Now 3 options are available to select type of property. Self occupied, Let out, deemed let out.
4. Property wise reporting of arrears/unrealized rent during the year:
   • Applicable for ITR 1, 2, 3, 4, 5, 6, 7
   • Arrears and unrealized rent received during the year less 30% is added as a new row and shall be reported property wise.
5. PAN/TAN of tenant:
   • Applicable for ITR 2, 3, 5 & 6.
   • 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 section 194-I.
6. Buyers information in case of transfer of immovable property
   • Applicable for ITR 2, 3, 5, 6
   • If assessee reports capital gain, from transfer of an immovable property , in income tax return, it would be mandatory for him to furnish the following information about the buyer: Name of the buyer, PAN of the buyer, percentage share, amount, address of the property, pin code. It is mandatory for the assessee to furnish the PAN of the buyer in ITR form if tax has been deducted under section 194 IA or PAN is quoted by the buyer in registration documents.
7. Schedule Profit and Loss account to seek more information
   • Applicable for ITR 3, 5, 6
   • New parts has been inserted in place of existing Part A P & L:
     1. Manufacturing account
     2. Trading account
     3. Profit and loss account.

For assessee engaged in manufacturing shall be required to fill all three account to arrive at profit & Loss account whereas service providers and traders can directly start from trading account.

8. Gain/Loss on account of foreign exchange fluctuation:
   • Applicable for ITR 3, 5, 6
   • In Part A – P & L wherein clause for” profit on account of currency fluctuations” have been replaced with. Effect of this is to be shown under Schedule ICDS. (Refer section 43AA).
9. Separate reporting of income generated from partial agricultural and partial business operations:
   • Applicable for ITR 3, 5, 6
   • Income from agricultural activities is exempt from tax by virtue of section 10. However, where a person earns income partially from agricultural activity and partially from non agricultural activity, the total income shall be bifurcated into agricultural income and business income as per Rules 7, 7A, 7B and 8 of income tax rules 1962.
   • In new ITR forms, a person having income from agricultural will have to disclose income in schedule BP(Business profits) and exempt amount in Schedule EI as as per Rules 7,7 A, 7B and 8 of income tax Rules 1962.
10. Details of Agriculture land to be furnished if agricultural income exceeds ₹ 5 lakhs
    • Applicable for ITR 2, 3, 5, 6
    • Section 10(1) of the Income-tax Act, 1961 exempts the agriculture income from income tax. Agricultural income exempt from tax is reported in Schedule EI (Exempt income)
    • The new ITR forms seek following additional details if net agricultural income earned during the year exceeds ₹5 lakhs- Name of district (with Pin code) where agricultural land is located, Measurement of agricultural land in acres, whether land is owned or held on lease, whether land is irrigated or rain fed.
11. Reporting of name and address of debtors in case of Bad debts
    • Applicable for ITR 3, 5, 6
    • In case of Bad debts of amount more than ₹ 1 lakh then only PAN of debtor is needed in ITR forms (if available). In new ITR forms, name and address of the debtor is required to be furnished if PAN is not available.
12. Reporting of GSTIN & GST turnover
    • Applicable for ITR 3, 4, 5, 6
    • This schedule was their in ITR 4, now incorporated in ITR 3, 5 and 6.
13. Reporting of business transactions with registered and unregistered suppliers under GST removed
    • Applicable for ITR 6
    • A new schedule was inserted in ITR 6 last year regarding transactions entered into during the year with a registered and unregistered supplier under GST. This reporting requirement has been removed in new ITR-6.
14. Reporting of disallowance under section 14A
    • Applicable for ITR 3, 5, 6
    • Separate reporting in Schedule OI (Other information) is required for disallowance made under section 14A.
15. No separate reporting of interest paid to partners
    • Applicable for ITR 5
    • ITR 5 does not require bifurcation anymore of interest paid to partners and non partners unlike last year. Interest paid to foreign company, outside India, non residents and others will remain same.
16. Disclosure of turnover and profit from speculative activities
    • Applicable for ITR 3, 5, 6
    • A separate schedule has been inserted in Schedule P & L which has the following information:
      • Turnover from speculative business.
      • Gross Profit.
      • Expenditure.
      • Net income from speculative activities.
17. Report audit requirement under other acts separately:
    • Applicable for ITR 3
    • New ITR-3 inserted a new clause asking for the details regarding the liability of assessee for audit under any act other than income tax act, wherein assessee is required to mention the relevant act and section under which audit is required and date of furnishing audit report for the same.
18. Reporting of Ultimate and immediate parent company:
    • Applicable for ITR 6
    • Foreign companies are required to report the following information:
      • Name of the parent company.
      • Address
      • Country of Residence.
      • PAN (if allotted)
      • Tax Identification number or unique identification number of the parent company.
19. Foreign companies to report Gross Receipts and Net Profit if on presumptive scheme:
    • Applicable for ITR 6.
    • Foreign companies whose total income comprises solely of presumptive income computed in accordance with section 44B, 44BB, 44BBA are now required to furnish gross receipts and net profits from such business computed under such provision in Part A-P & L.
20. Investment in unlisted companies:
    • Applicable for ITR 2, 3, 5
    • A new table has been inserted in the ITR forms to seek the details in respect of unlisted equity shares held at any time during the previous year by an assessee.
      1. Name of the company.
      2. PAN of the company
      3. No. and cost of acquisition of shares held at the beginning of the year
      4. No. of shares, face value, issue price (for purchase price) and date of purchase of shares acquired during the year.
      5. No. and sale consideration of shares transferred during the year.
      6. No. and cost of acquisition of shares held at the end of previous year.
21. Presumptive scheme- Additional disclosures
    • Applicable for ITR 3, 4, 5, 6
    • Business, business code, Description of the business to be mentioned in the new ITR forms. Separate schedules for computation of income under 
      section 44AD, 44ADA and 44AE introduced.
    • One cannot add vehicle details of more than 10 as the addition of rows is restricted in the utility.
22. Gross receipts through a/c payee cheque/draft or any other mode
    • Applicable for ITR 3, 5, 6
    • Assessee not liable to maintain books of account u/s. 44AA are required to report Gross Receipts by splitting receipts through a/c payee cheques/draft/ECS and any other mode.
23. Reporting of shareholding by start ups and closely held companies:
    • Applicable for ITR-6
    • A new Schedule SH-2 wherein startups are required to provide the following information on the shareholders and the share applicant (in case of allotment is pending)-
      • Name of the shareholder
      • Category of shareholder.
      • Type of Share
      • PAN of shareholder
      • Date of allotment/Date of application of shares.
      • Number of shares held/No. of shares applied for by the shareholder.
      • Face value per share
      • Issue value per share
      • Paid up value per share
      • Share application money in case allotment is pending
      • Share premium

        In case a person is a shareholder during the previous year but ceased to be a shareholder at the end of the previous year following additional information is required:-

      • Date on which he ceased to be shareholder.
      • Mode of cessation
      • PAN of new shareholder in case of transfer
24. Effect of section 10(38) withdrawal
    • Applicable for ITR 2, 3, 5, 6
      1. The Finance Act, 2018 withdrew exemption of tax on long term capital gains arising from transfer of securities , being equity shares, units of equity mutual funds or units of business trust by inserting section 112A.
      2. Separate entry of transfer of securities will have to be inputted in the ITR as a separate column of FMV.
25. Section 54EE deleted from Capital Gain Schedule
    • Applicable for ITR 2, 3, 5, 6
26. Full value of consideration in case of transfer of land or building (section 43CA, 50C and 56(2)(x)
    • Applicable for ITR 2, 3, 5, 6
    • Actual sales consideration shall be deemed to be the full value of the consideration if stamp duty value does not exceed 105% of actual sales consideration.
27. Profit on conversion of inventory into capital asset
    • Applicable for ITR 3, 5, 6
    • Insertion has been brought in profit and loss account to report such income.
28. Bifurcation of interest income
    • Applicable for ITR 1, 2, 3, 4, 5, 6, 7
    • Separate reporting of interest income from Saving Bank Interest, Deposits, Income tax refund, others.
29. Accrual or receipt of dividend and income by way of lotteries, crossword puzzle
    • Applicable for ITR 2, 3, 5, 6, 7
    • Assessee can disclose the accrual or receipt of dividend income taxable u/s 115BBDA and income by way of winnings from lotteries, crosswords puzzle for each quarters of Advance Tax.
30. Deduction u/s. 80TTB
    • Applicable for ITR 1, 2, 3, 4
    • Deduction under section 80TTB is incorporated where senior citizens are allowed to claim deduction up to ₹ 50,000 in respect of income on deposit from Banks, Co-operative society and post office.
31. Deduction u/s. 80GGA
    • Applicable for ITR 2, 6
    • New Schedule has been inserted asking for details of donations for scientific research or rural development:
      1. Relevant clause under which deduction is claimed.
      2. Name & Address of the Donee.
      3. PAN of the Donee.
      4. Amount of deduction with breakup of cash and other mode.
      5. Eligible amount of Donation
32. Additional information in respect of residential status in India
    • Applicable for ITR 2, 3
    • Assessee is now required to provide inform with respect to his/her residential status such as:-
      • No. of days stay in India.
      • Jurisdiction of his residence
      • Tax identification Number in case of a non-resident.
33. Disclosure relating to foreign assets
    • Applicable for ITR 2, 3, 5, 6, 7
    • Detailed disclosure of foreign depository account, foreign custodian accounts, equity or debt interest and particulars of overseas cash value insurance contract or annuity contract to be disclosed.
34. Schedule AMT inserted
    • Applicable for ITR 2
    • If an Individual/HUF who don’t have income from business or profession can use ITR 2 for filing his return of income if he is liable to pay AMT.
35. Changes in ITR 5
    1. In General information various sub status have been introduced. Two new status Business trust and Investment fund are also introduced.
    2. Point numbers 62 to 65 of schedule P & L are introduced for presumptive income which are in line with corresponding tables of ITR 4 (Applicable for ITR 3 & ITR 5)
    3. Schedule P has been introduced to claim deduction under section 80P
    4. Schedule IF has been introduced regarding information in partnership firm in which entity is a partner.
36. Changes in ITR 6
    1. In Part A-Gen, now there is a requirement to report the date of commencement of business along with date of incorporation .
    2. Change in tax rate for small domestic companies

       The Finance Act 2018 has increased the turnover limit from 50 crores to 250 crores to apply concessional rate of 25% tax rate.

37. Changes in ITR-7
    1. Details of registration under any law are also required to be reported.
    2. Schedule AI, ER, EC will applicable only to trusts/institutions claiming exemption under section 11, 12 or 10(23C)(iv)(v)(vi)(via). Schedule ER and EC requires more details.
    3. Schedule IE-1, IE-2, IE-3, IE-4 has been inserted for reporting of income and expenditure statement by trust.
    4. With effect from AY 2019-20, Rule 12 of IT Rules has been amended to exclude sections 139(4E) and section 139(4F) from the list which are applicable to Business trusts and Investment funds respectively.