April 5, 2019

Income Tax Return Forms AY 2019-20 (FY 2018-19) – Which form to use?

CBDT notified the ITR or Income Tax Return Forms AY 2019-20 (FY 2018-19). There are a few major changes in these forms. Let us see in detail these changes and understand which form you can use.

The new ITR forms in PDF format are available. However, the excel utilities (or) Java Utilities for AY 2019-20 will soon be made available on E-filing website.

Before jumping to understanding the new forms, let us first understand the income tax slabs for FY 2018-19 or AY 2019-10 from the below image.

Latest Income Tax Slab Rates FY 2018-19 (AY 2019-20)

Points to consider before filing ITR for AY 2019-20 (FY 2018-19)

# You have to consider the standard deduction of Rs 40,000 in lieu of travel, medical expense reimbursement, and other allowances for salaried employees and pensioners.

# Senior Citizens who have the Interest income earned on Fixed Deposits and Recurring Deposits (Banks / Post office schemes) is exempted up to Rs 50,000. This deduction can be claimed under new Section 80TTB.

# Earlier there was 3% cess as 2% for primary education cess and 1% for secondary and higher education cess for AY 2018-19 (FY 2017-18). However, for AY 2019-20, this was replaced with 4% Health And Education Cess in ITR filing.

# The limit under section 80DDB has been increased to Rs 1 lakh towards medical expenses, for treatment of Critical Illnesses.

# Sec. 80TTA offers deductions on interest income earned from savings bank deposit of up to Rs 10,000. From FY 2018-19, this benefit will not be available if you file the IT return lately.

# LTCG tax at 10% on gains of above Rs 1 lakh from Equities and Equity Mutual Funds has to be shown in applicable ITR form. Earlier the LTCG from such Equities and Equity Mutual Funds was exempted.

# Additional details for Residential Status (in ITR 2 and 3) have to be reported for AY 2019-20.

Income Tax Return Forms AY 2019-20 (FY 2018-19) – Which form to use?

ITR 1 (Sahaj) Form For Assessment Year 2019-20

This form can be used only for the income generated during FY 2018-19

You can use this form in case-

# Salary or Pension Income

# Income from one house property (excluding cases where the loss is brought forward from previous years)

# No business income / no Capital gains

# No asset in a foreign country or no income from a source outside India

# Agricultural  income which is less than Rs 5,000

# Income from other sources like FD/Shares/NSC etc.,

# No income from lottery or horse racing.TR Form-1 (Sahaj) can be filed by an individual who is resident other than not ordinarily resident, having income up to Rs 50 lakh and who is receiving income from salary, one house property / other income (interest, etc.).

You can’t use this form in case-

You can’t use this form in case-

# If your total income for the assessment year 2018-19 exceeds Rs.50 lakh;

#  Income from more than one house property;

#  Income from winnings from lottery or income from Racehorses;

# Income taxable under section 115BBDA;

#  Income of nature referred to in section 115BBE;

#  Income under the head “Capital Gains”;

#  Agricultural income in excess of Rs.5,000;

# Income from Business or Profession;

# Loss under the head ‘Income from other sources’;

# Person claiming relief under section 90 and/or 91;

# Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India;

ITR 2 Form For Assessment Year 2019-20

ITR2 form can be filed by an Individual or HUF. This form can be used if you have;

# Salary or Pension Income

# Income under the head ‘Capital Gains’

# Income from multiple houses

# No business / professional income under any proprietorship

# An asset in foreign country or income from a source outside India

# Agricultural income of more than Rs 5,000

# Income from lottery or horse racing

# If your income is more than Rs 50 Lakh, ITR 2 has a Schedule AL requiring assessees to declare their assets and liabilities at the end of the fiscal.

ITR 3 Form For Assessment Year 2019-20

# New ITR 3 form is for individuals and HUFs having income from a proprietary business or profession (or having income as a partner in a Partnership firm).

# This ITR covers all kind of businesses and professions irrespective of any income limit. Assessee can also report his income from salary, multiple house properties, lottery winnings, capital gains, speculative income i.e. horse race in ITR3 together with the Business Income.

ITR 4 Form For Assessment Year 2019-20

This form can be used by individuals who have;

# For Individuals, HUFs and Firms (other than LLP) being a resident having total income upto Rs.50 lakh and having income from business and profession

# No Capital Gains

# Agricultural Income which is less than Rs 5k

# No asset in a foreign country or no income from a source outside India

# Income from one house property

# Income from other sources

Hope this much information is sufficient for you in choosing the Income Tax Return Forms AY 2019-20 (FY 2018-19).

81 Comments

  1. Dear Sir,

    I have a small Query Regarding ITR form!

    I am a freelance recruiter & hire candidates for the companies with the help of Placement agencies!!

    Therefore, I generate income/ or get commission from placement Agencies for hiring candidates !!

    Its not a salary income because i get a commission based on per hiring candidate & I don’t have any firm/Business too!!!
    Form 1- used for Salaried people
    Form 4- used for a business purposes!!

    Which ITR form, I am supposed to use to get TDS Refund???

    ITR form 3,, would be valid for a person who generates incomes as a commission but doesn’t own a company/business etc…

    Reply
  2. for fy 2018-19, AY 2019-20, which form should a person fill, while working as a consultant (residing in India) for a foreign registered company (without office in India) be using? please advise

    Reply
  3. Sir, I am an NRI. I have NRE funds in India as Fixed deposits in a bank. Interest from this FD is around 3 lac rupees per year. I also have an NRO account which gets less than 3000 rupees as interest in a year, and TDS is deducted on this.
    I was asked to submit IT return. ITR 2 is to be filed.
    Which income should I indicate in the return. Am I supposed to declare my assets in my overseas country of residence, where I have been for many years and I only visit India for holidays of less than a month in a year.

    Hope you will enlighten me on this.

    Reply
    • Dear Mohankumar,
      You have to consider NRE interest as exempted income and NRO interest as INCOME FROM OTHER SOURCES.

      Reply
      • Thank you very much for the precise breif answer to my long letter. Continue with your goo work.

        Reply
  4. Can file itr as individual taxpayer if he gets income from interest of saving accounts and from proprietorship.

    For abovementioned income ITR – 3 is sufficient.

    Reply
  5. sir,
    i got long term capital gain of rs. 48000 through ICICI equity Arbitrage Fund. Plz advice which return do i need to file ?

    Reply
    • Dear Dharmendra,
      If you have only this much income, then you can use ITR2.

      Reply
      • thanks for response..
        sir i am govt employee.can i declare this in exempt income column in ITR 1 ?

        Reply
          • thanks a lot…

            Reply
  6. Sir,
    I have income under 194J which is under less than 2.5 lakhs. TDS is deducted under 194J as per 26AS. I have no other extra income. Which ITR shall I file?

    Reply
  7. While filing my return ITR3 I am getting error “Check for Financial Interest/Assets out of India in Sheet : PARTB-TI-TTI should be filled”, and tax is not being calculated in this sheet, can you help what could be wrong?

    Reply
  8. Dear Sir,
    I was filling ITR-3 in excel utilities. In Part A- General under the column weather you are director in any company tab is disable mode. Any idea how to unable it.
    Which which I can not validate sheet

    Reply
      • No…still excel is giving error after sheet validation… you have to fill the column (which is disable mode)

        Reply
        • Use a different excel utility

          Reply
  9. SIR.I am government employee and I have capital loss from equity shares for FY 2018-19.which itr form can we use to filing IT RETURNS.Please suggest me.THANK YOU Sir.

    Reply
  10. Dear Basavaraj, I have 2 form 16’s from 2 employers but total income is less than 50 lacs. But I have some exemptions like leave encashment under sec 10AA. Should I file ITR1 or ITR2? Please help.

    Reply
      • Thank you very much.

        Reply
  11. Dear Sir,
    I file ITR-2 as I earned long term capital gain of the order of thousand (Much below one lakh). Kindly advise me where I have to indicate this LTCG amount in ITR-2 as any entry in CG sheet calculate it as special rate of 10%.

    Regards.

    Reply
    • Dear Thakker,
      If you are finding it difficult to identify, then better to take service of your nearest tax expert. I can’t guide the whole things in comment.

      Reply
  12. Java Utility from IT Dept website has a bug. Every time you open the file worked upon previously it will ask you to download the latest utility. Even after doing so and on attempting to open the file worked upon previously, it will say ” Wrong Assessment Year “. Any suggestions?

    Also, has any one tried to print the ITR from these utilities and seen the mess it prints?

    Reply
  13. Which ITR form is applicable for Individual having Salary income, Income from multiple house properties and business income u/s 44ADA

    Reply
  14. Can I use ITR-1 for LTCG (mutual fund) less than 1 Lakh Rupees ? If yes, where to show it in ITR-1
    Please guide me. Thanks !

    Reply
    • if we show LTCG (mutual fund) less than 1 Lakh Rupees in ITR-1 in exempt income section as ANY OTHER and the give description as LTCG LESS THAN ONE LAKH.

      is it OK, Any Comments

      Reply
  15. Dear Sir:
    I am 66 yrs old, Lady, am a State Govt pensioner, with following incomes:
    a) Pension: Rs. 3,17,000, less Std deduction 50,000, Actual Income= 2,67,000.
    b) Interest from SB A/c= Rs.6,783.
    c) Gifts received on my Birthday: Rs.44,800.
    d) I had invested Rs.1.30 lakhs in ELSS Mutual Fund in March 2016, and after 3 yrs lock-in, it matured in March 2019, Recd. Rs.1.68 lakhs. Profit 38,000, with STT deducted.
    e) I take home tuition, earned Rs.39,000.
    After seeing your expert replies, I am inclined to request you for:
    A) Which ITR Form applies to me.
    B) Should I include all income from a) to e) in such Form, if not which are Excluded, Exempted.
    B) OR, if I don’t have to show Gift of Rs.44,800, and petty income of 39,000 from tuition, ELSS non-taxable profit 38,000, then I am below tax-slab of Rs.3.0 lakhs. Should I still file ITR.
    I am a layman, and shall be thankful for your expert reply. Thanks indeed.

    Reply
    • Dear Usha,
      You have to use ITR3 as you have professional or business income like tution. The exempted income is gift and ELSS.

      Reply
      • Dear Sir: Thanks and deep appreciation for so quickly and promptly replying and enlightening me on this subject.
        Just need related clarification: ITR3 (which I saw after your reply) is too elaborate to fill. So, if I just ignore Tuition-earning (negligible), then can I fill in ITR1? In ITR, do I have to first show gift & ELSS Amts and deduct same as exempted, or don’t show at all. This will be my first Return.
        PS: No doubt, you are a top Blogger.

        Reply
        • Dear Usha,
          If you are ignoring the tution income (I suggest to declare), then yes you can use ITR1. Regarding the filling, you have to show the exempted incomes under the specified field.

          Reply
          • Dear Sir, Thanks a LOT for your professional replies/ guidance. I am benefited by your opinion. Your speed of reply (even on a Sunday like today) is highly appreciated. May you grow well in your profession. Regards,

            Reply
  16. Sir,
    What is the meaning of Fiscal 19? Is it FY 2018-19 or FY 2019-20?

    Reply
    • Dear Bikas,
      Fiscal year means the financial year. Hence, the current FY is 2019-20.

      Reply
      • Thanks,Sir

        Reply
  17. Sir,
    I am a salaried Govt. Employee. I have income from salary and other sources like Bank F.D. interest from which TDS is deducted.
    Now in ITR1 for AY 2019-20 I have to report Total Taxes Paid which includes…. Total TDS claimed+ Self assessment tax+ Advance tax paid. Now what is this “Total TDS claimed”? Is it the sum total of TDS from salary as per Form 16 (Schedule TDS1)+ TDS on the Bank F.D. interest as per Form 16A (Schedule TDS2)?
    Kindly clarify.

    Reply
      • Nice,Sir

        Reply
  18. Sir,
    I have earned some pension amount from lici annuity plan for the FY 2018-19. I understand that the amount is fully taxable. Under which head of INCOME I can show the amount in itr1 for AY 2019-20?

    Reply
  19. Sir, I have income from LTCG (Equity Mutual funds) which is less than 1Lakh. Can I use ITR-1 and show the respective amount under Exempt Income(for reporting purpose). I did the same previous year as well and there were no issues.

    Reply
      • ITR1 can be submitted entirely online and is only 3-4 pages. For ITR2, it cannot be done entirely online. Need to download the software, fill the values in 19-20 sheets , extract xml and then should be uploaded to website. Please correct if I am wrong with the above process.

        Reply
    • I have the same problem, My sister has income from bank accounts and FD which is about one lakh. In last financial year one MF is matured and hence she has income from LTCG which is less than 1 lakh. As you mention in last year return we have to show the exempt income only not its description from where we got it.

      In this year itr1, if we show this in exempt income section as ANY OTHER and the give description as LTCG LESS THAN ONE LAKH.

      is it OK, Any Comments

      Reply
      • Dear Alok,
        Please share your exact doubt and based on that I can guide you.

        Reply
  20. If a auto drive wants to show his income and he is owner of the auto.. in which form he can show

    Reply
  21. My wife has income from saving accounts & bank fixed deposits. She also received gifts from close relatives of less than Rs. 1 lakh. However, in FY 2018-19, she also had LTCG from sale of residential plot. Her total income from all sources was less than Rs. 15 lakhs. Kindly advise, which form should she use to file her income tax return for AY 2019-20?

    Reply
  22. Sir,
    My mother who is a super senior citizen has income from family pension and some savings bank interest only. Which ITR she is required to file for the AY 2019-20?
    In ITR1 for AY 2019-20…..In Part A (General Information) a column “Nature of Employment”…..Govt. PSU, Pensioners, Others has been added which is mandatory to fill in online efiling. But my mother is a family pensioner which is included in “Income from other sources”. Unlike previous years there is no option like “not applicable” under “Nature of Employment”. Which option she should chose?

    Reply
    • Dear Bikas,
      Please cross check the form once again. Your mother’s pension is considered as salary income but not an “Income from other sources”. Hence, you have to use ITR1 only.

      Reply
      • No ,Sir, it’s not “pension” which is considered as salary but “family pension” which is included in “income from other sources”

        Reply
        • Dear Bikas,
          Are you sure of that family pension is considered under the head of “Income from Other Sources”?

          Reply
          • Yes Sir…..I checked it myself while efiling and I have also cross checked it from other it consultants

            Reply
              • thanks

                Reply
            • dear Bikas Biswas, family pension is considered under the head of “Income from Other Sources”, pension received by a family member will be exempt up to Rs.15000 or 33.33% of actually received amount- which ever is less is exempt . Further while filing in ITR -1 under employment tab, not applicable option is available you may choose that option.
              Hope you understand

              Reply
  23. my friend’s parent deposited Rs.4 lakhs in my bank account to paid to my friend. What to do in cases?

    Reply
    • Dear Manoranjan,
      Why did you allow to deposit their own to transfer to THIRD party?

      Reply
  24. What if I sold my house which I got from my parents, do I need to show this as income?

    Reply
    • Dear Vishajeet,
      If you are the property owner and you received the sold amount in your name, then definitely you have to show it under capital gain income.

      Reply
  25. in new Sahaj1 form what all other income can be included under the head “other Income”. Can A student with an interest income of 1.5 lakhs and coaching or teaching income of around 1.2 lakhs use Sahaj 1

    Reply
    • Dear Sanjay,
      Interest income is considered as INCOME FROM OTHER SOURCE. However, the coaching and teaching income (if not receiving as salary), is considered as a business or professional income.

      Reply
  26. Income from one house : If i own 2 (one where i stay and one which is rented) , does it qualify as income from one house.

    Can you clarify interpretation ?

    Reply
    • Dear Vijay,
      If you are holding more than two properties, then apart from one property, other properties are considered as Income from house property. Hence, you are considered as you are holding more than one property.

      Reply
      • In the example I have given of owner of 2 houses (self stay, rented) , I will have to use ITR2 for filing.

        Reply
          • sir i have sold site of Rs 50,00,000 so which form i can show

            Reply
            • Dear Savita,
              What about other incomes? Can you elaborate on the other sources of income you have?

              Reply
              • no sir i dont have any other income

                Reply

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