Income tax

Major changes in Income Tax Return for Individuals AY 2019-20

The income tax department has already notified Income Tax Return forms for the year ending 31st March 2019 i.e. Assessment Year 2019-20, the major changes for Individuals are as under:-

  1. Details in relation to Directorship of Companies : A person who is a director in a company shall not be able to use ITR-1 and ITR-4 for filing of return of income and he has to use ITR 2 or ITR 3, as the case may be. Further, if an individual has been director in a company at any during the previous year, he has to provide the following information:
  2. a) Name of Company
  3. b) PAN
  4. c) Whether shares of the company are listed or unlisted?
  5. d) DIN


  1. Investment in Unlisted Companies : – Where a company issues shares at a price which is less than its Fair Market Value (FMV) and the difference between the FMV and issue price exceeds Rs.50,000 then the difference is charged to tax in the hands of the shareholders under the head income from other sources.

In order to keep check on issue of shares by a closely held companies and investment made therein by shareholders, a new table has been inserted in new ITR forms to seek the following 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 (or 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 the previous year


  1. Salary Income to be reported on Gross Basis : – Till last year salary amount was reported excluding all exempt and non-exempt allowances, perquisites and profit in lieu of Salary. These amounts were mentioned separately in the Schedules and only net salary was reported in the Income Tax Return form.

Now, from Assessment Year 2019-20, 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 taxable figure of salary income. Further, the new ITR forms seek separate reporting of all deductions allowable under Section 16, namely:

  1. Standard deduction
  2. Entertainment allowance
  3. Professional tax


  1. Details of Buyer in case of transfer of Immovable Property: In case of 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:


  1. Name of buyer
  2. PAN of buyer
  3. Percentage share
  4. Amount
  5. Address of property
  6. Pin code

It is mandatory for the assessee to furnish the PAN of buyer in ITR form if tax has been deduced under section 194-IA or PAN is quoted by buyer in the registration documents.

PAN is otherwise a mandatory document to buy or sell an immovable property if the stamp duty value or the sales consideration exceeds Rs. 10 lakhs.

  1. Details of nature of residuary income in ITR 1 & 4 : – Up to Assessment Year 2018-19, taxpayers were required to disclose the aggregate amount of income taxable under the head other sources. However, from Assessment Year 2019-20, it is mandatory for an assessee to specify the nature of income taxable under the head income from other sources and the deductions claimed in respect of family pension in accordance with Section 57. Such extra disclosures have been asked by the Dept. to check that the ineligible persons are not using the ITR 1 and ITR 4 for filing of return.


PS: For any query or assistance in this regard contact us.

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I am Praveen Agrawal.

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