According to the notification, two major changes in the ITR forms have been effected. First, an individual taxpayer cannot file return either in ITR-1 or ITR4 if he is a joint-owner in house property.
Secondly, ITR-1 form is not valid for those individuals who have deposited more than Rs 1 crore in bank account or have incurred Rs 2 lakh or Rs 1 lakh on foreign travel or electricity respectively, it said.
Such taxpayers will have to use different forms, which will be notified in due course.
Effectively, the government will now be able to link the passport number and PAN of all those who are filing ITR 1 for current financial year. This is because the income tax return form 1 notified for financial year 2019-20 requires the filer to mandatorily mention passport number if any and of course the form cannot be filed without mentioning PAN. Therefore, at the back-end the government database for all ITR-1 filers who possess passports will have both pieces of information together i.e PAN and passport number.
Here's a list of the 6 key changes, including the one mentioned above, introduced in the ITR1 for financial year 2019-20.
-
Passport details
-
TAN of your employer
-
Complete address of your house
-
Provide details of unrealised rent
-
Eligibility criteria for ITR- 1 reduced
-
PAN or Aadhaar details of your tenant
-
Passport details
In this year's ITR-1, taxpayers will have to provide their passport number (if they have one). This is a new addition. This form, however, cannot be used by individuals who have spent Rs 2 lakh or more on foreign travel expenses.
"It is a possibility that passport details are asked to check if you have travelled to a foreign country in FY 2019-20 or the income declared by you matches with your ability to incur the expenses of foreign travel on yourself or any other person."
Last year in July 2019 Budget, it was announced that those who have incurred expenses of Rs 2 lakh or more for foreign travel either on himself or any other person, will have to mandatorily file ITR.
2. TAN of your employer
This year's ITR-1 asks for detailed information of 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 name, nature, address of the employer.
According to the notified form, these details will be pre-filled automatically, once TAN of the employer is filled by the taxpayer in ITR-1. You can find the employer's TAN details in your Form-16.
It is mandatory for your employer to give you Form-16 if tax is deducted.
3. Complete address of your house
You will now have to provide the complete address of your house property in ITR-1.
"It is now mandatory that you have to provide the complete address of your house irrespective of whether it is - self-occupied, deemed to let-out or let-out. Earlier, these details were asked only in ITR-2 and ITR-3."
4. Provide details of unrealised rent
If during FY 2019-20, you have not received the rent which was due to you, then such details are also required to be provided.
"Taxpayer eligible to file ITR-1 is required to provide the rent which was due but not received in FY 2019-20. Such information was earlier asked only in ITR-2 and ITR-3."
5. Eligibility criteria for ITR- 1 reduced
The latest ITR-1 form has further restricted the eligibility for filing ITR-1.
"The ITR-1 for FY 2019-20 cannot be used by an individual having one house property in a joint ownership."
Last year, ITR-1 allowed the taxpayer to file return using ITR-1 if they owned one joint house property.
Similarly, this year as well, the ITR-1 cannot be used by an individual who is either director in a company, or has invested in unlisted equity shares.
As mentioned above ITR-1 cannot be used by individuals who have incurred expenses of Rs 2 lakh or more for travel to foreign country either on himself or any other person. Added to this, individuals who have deposited more than Rs 1 crore in one or more current accounts or/and paid electricity bill of more than Rs 1 lakh, too cannot use ITR-1.
6. PAN or Aadhaar details of your tenant
If you have rented out a property, then you will have to provide name and Aadhaar or PAN details of your tenant, if available.
"It is yet to be seen whether ITR-1 form utility will allow the taxpayers to file the tax return without providing tenant details in case of let-out of property. The field has been introduced and it appears that it will be mandatory in new ITR-1 and ITR-4."