For the FY 2018-19 or assessment year 2019-20, the department has enabled the filing through ITR 1 and ITR 4. ITR 1 form also called as Sahaj is required to be filed by taxpayers who have income from salary, pension, one house property and other sources.
Further despite being the most common form to file the income tax return, ITR 1 or Sahaj form, as per the income tax department need not be filed by some taxpayer category and these include:
1. Non-resident or not ordinary resident.
2. Taxpayers whose total income for the assessment year 2018-19 is more than Rs. 50 lakh.
3. Taxpayers for whom total income for the year also includes income from more than one house property.
4. Total income for the FY 2018-19 include income that is chargeable to tax under the head capital gains.
5. Total income also includes agricultural income higher than Rs. 5000
6. Total income includes income from business or profession
7. Income comprises such income that is provided in section 115BBE
8. Total income of an individual is also from sources such as winning amount from lottery or income from horse racing or income that is charged under section 115BBDA
9. Also taxpayers whose total income for the FY 2018-19 includes loss under the head "Income from other sources" are not required to file ITR 1
10. Individuals residing in India whose total income also includes income from any source outside India
11. Individuals who have claimed relief under section 90 and/or 91
12. Any resident with any assets that include financial interest in any of the entity situated outside India or having signing authority in respect of any account outside India.
13. If income to be apportioned in accordance with provisions of section 5A.
So, these taxpayers as per their income source can carefully assess which ITR form they need to fill in by the due date i.e. July 31, 2019.
Following changes In ITR 1 for AY 2019-20
Also, there are have been implemented some changes and as per which
salaried individuals who have directorship in some companies will no longer be able to file their returns in ITR1.
Those with investments in listed and unlisted shares are also debarred from filing ITR1.
Also, the column for reporting tax free LTCG after LTCG on equity investments has been reinstated as per the Finance Act, 2018 has been removed in the new ITR 1 form for FY 2018-19. So, now even a salaried individual who have made redemptions in FY 2018-19 and accrues LTCG on equity shares exceeding Rs 1 lakh is required to report the same in ITR-2.
Also, as with the other ITR forms, this time in case of ITR 1 also you need to give the break up of interest income along with the source. This is done to check false claims on interest from savings account which is Rs. 10,000 as per Section 80TTA. For seniors aged 60 years and above, the deduction in respect of interest from banks savings, deposits etc. has been hiked to Rs. 50,000 for the financial year, so this reduces their tax liability.
Note for each of the interest income source, the amount as well as the source has to be entered separately.
So, despite the rebate being extended to up to Rs. 5 lakh income, all Indian residents with gross income exceeding Rs. 2.5 lakh in the last fiscal year need to file their return. Individuals with gross income up to Rs. 50 lakh , whose accounts are not required to be audited can file ITR 1.