New ITR Forms notified for AY 2019-20

Recently, the 6th and the Interim Budget was presented by the government on the 1st February 2019. There were numerous positive measures in the budget for all the sections of the economy. Most importantly, the government had increased the rebate on income tax on income up to ₹5 lacs.  

The Central Board of Direct Taxes (CBDT) has recently notified new Income Tax Return filing forms for the FY 2018-19. These are namely-

• ITR-1 (Sahaj),
• ITR-2,
• ITR-3,
• ITR-4 (Sugam)
• ITR-5,
• ITR-6,
• ITR-7

The new ITR filing forms have been notified on 1st April 2019, as per the Finance Act, 2019.

1. Who has to file the Form ITR-1?

The Form ITR-1 individuals who are a resident (other than not ordinarily resident) and are having total income up to ₹50 lakhs, from Salary, one house property, and other sources (Interest etc.). This also includes agricultural income up to ₹5,000/-.

Here, an amendment has been made that this form is not for an individual who is either Director in a company or has invested in unlisted equity shares.

2. Who has to file the Form ITR-2?

The Form ITR-2 is for Individuals & HUFs who do not have income from profits and gains of business or profession (PGBP)

3. Who has to file the Form ITR-3?

Those individuals and HUFs who are having income from profits and gains of business or Profession (PGBP) are required to do Income Tax Return filing in Form ITR-3.

4. Which persons can file the Form ITR-4?

The Form ITR-4 also called Sugam ITR, is for those Individuals, HUFs as well as Firms (other than LLP), being a resident and having total income up to ₹50 lacs from PGBP. This is applicable to the income computed on presumptive basis u/s 44AD, 44ADA or 44AE

Here also, an amendment has been made that this form is not for an individual who is either Director in a company or has invested in unlisted equity shares.

5. Which persons have to file ITR 5?

ITR 5 is applicable to:

• LLPs (Limited Liability Partnership),
• AOPs (Association of Persons) and
• BOIs (Body of Individuals).

It is not applicable to the following:

• individual,
• HUF,
• company and
• Those filing Form ITR-7

6. Who needs to file ITR 6?

Those organisations other than companies, formed for charitable purposes and are claiming exemption u/s 11 have to file ITR 6.

7. Who can file ITR 7?

Form ITR-7 is for the persons including companies who need to do income tax return filing u/s 139(4A) or 139(4B), 139(4C) or 139(4D).

• Section 139(4A) is applicable to persons having income derived from the property of a trust partially/entirely for a charitable or religious purpose.
• Section 139(4B) is applicable to political parties if the total income exceeds the maximum amount which is not taxable.
• Section 139(4C) is applicable on –

1. Scientific research associations;
2. News agencies or media-houses;
3. Institutions u/s 10(23A) & (23B);
4. A Fund, educational institution or a medical institution.

• Section 139(4D) applies to all educational institution, not required to furnish the return of income or loss under any other provision under this section.

Also, read the 

It is advised to timely file all your Income Tax Return as to avoid the high penalty.

If you want any sort of guidance regarding the process of income tax return filing, you can feel free to contact our business advisor at 8881-069-069.

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