financial services · Income Tax · income tax return

What are the key changes in ITR-1 and ITR-2 forms for FY 2018-19?

difference between itr 1 and 2

The income tax department has already notified the ITR Forms for the financial year 2018-19. These forms are slightly different from previous years forms. However, the changes have been already declared by the government so that taxpayers may not face any complexities while filing ITR. Meanwhile, ITR forms form ITR-1 to ITR-7 has already available on the website out of which ITR-6 will be out shortly.

Here are some changes in ITR Forms 1 & 2 that you should know when you file returns for the AY 2019-20-

Unlike last year, from this year all individuals apart from super senior citizens (above the age of 80 years) need to file ITR returns electronically.

  • The eligibility to efile ITR Forms has become more confined. Now, the individuals who are directors in one company and have invested in unlisted company are not eligible to file ITR-1.
  • Whereas in ITR-2 Form taxpayers is required to disclose investments in unlisted equity shares.
  • If you have sold a property (immovable property or capital assets) in FY 2018-19, while filing ITR 2, you need to provide complete details of the buyer.
  • Directors in both listed and unlisted companies will have to file their tax returns in ITR-2. It will also be mandatory for them to disclose details like Director Identification Number (DIN), Permanent Account Number (PAN), equity holding along with the names of the companies.
  • The new ITR Form 2 requires individuals to disclose the clause of section 6(1) of the Income-tax Act, 1961 under which the residential status of an individual is determined.
  • It is now mandatory mention Aadhaar number while E-filing ITR in the forms without which the tax returns will not be processed.
  • This year providing details of your salary income will be easier as the details required are in sync with the information available in Form-16.

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