Categories: Tax Planning

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.

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).

BasuNivesh

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View Comments

Manish K Singh says:

July 3, 2020 at 6:12 PM

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...
- Basavaraj Tonagatti says:
  
  July 3, 2020 at 7:45 PM
  
  Dear Manish,
  Use ITR3.
sandeep says:

January 7, 2020 at 11:51 PM

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
- Basavaraj Tonagatti says:
  
  January 8, 2020 at 10:49 AM
  
  Dear Sandeep,
  You have to use ITR3.
Mohanakumar says:

August 3, 2019 at 8:47 PM

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.
- Basavaraj Tonagatti says:
  
  August 3, 2019 at 10:03 PM
  
  Dear Mohankumar,
  You have to consider NRE interest as exempted income and NRO interest as INCOME FROM OTHER SOURCES.
  - Mohanakumar says:
    
    August 4, 2019 at 8:15 PM
    
    Thank you very much for the precise breif answer to my long letter. Continue with your goo work.
Om Prakash says:

July 30, 2019 at 2:55 PM

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.
- Basavaraj Tonagatti says:
  
  July 30, 2019 at 8:10 PM
  
  Dear Om,
  ITR 3 is to be used.
dharmendra raj chauhan says:

July 25, 2019 at 11:13 PM

sir,
i got long term capital gain of rs. 48000 through ICICI equity Arbitrage Fund. Plz advice which return do i need to file ?
- Basavaraj Tonagatti says:
  
  July 26, 2019 at 8:39 AM
  
  Dear Dharmendra,
  If you have only this much income, then you can use ITR2.
  - dharmendra raj chauhan says:
    
    July 29, 2019 at 6:55 PM
    
    thanks for response..
    sir i am govt employee.can i declare this in exempt income column in ITR 1 ?
    - Basavaraj Tonagatti says:
      
      July 29, 2019 at 9:42 PM
      
      Dear Dharmendra,
      You can.
      - dharmendra raj chauhan says:
        
        August 8, 2019 at 6:48 PM
        
        thanks a lot...
NCC says:

July 22, 2019 at 7:36 PM

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?
- Basavaraj Tonagatti says:
  
  July 22, 2019 at 7:47 PM
  
  Dear NCC,
  ITR3.
anita chopra says:

July 22, 2019 at 1:56 PM

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?
- Basavaraj Tonagatti says:
  
  July 22, 2019 at 3:04 PM
  
  Dear Anita,
  Hard to identify the error.
Arati says:

July 21, 2019 at 4:50 PM

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
- Basavaraj Tonagatti says:
  
  July 22, 2019 at 8:53 AM
  
  Dear Arati,
  Are you a director?
  - Arati says:
    
    July 22, 2019 at 7:07 PM
    
    No...still excel is giving error after sheet validation... you have to fill the column (which is disable mode)
    - Surbhi says:
      
      January 19, 2020 at 3:52 PM
      
      Use a different excel utility
Hariprasad says:

July 19, 2019 at 7:10 PM

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.
- Basavaraj Tonagatti says:
  
  July 22, 2019 at 9:08 AM
  
  Dear Hariprasad,
  ITR2.
Chaitanya says:

July 17, 2019 at 10:06 PM

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.
- Basavaraj Tonagatti says:
  
  July 18, 2019 at 8:45 AM
  
  Dear Chaitanya,
  Use ITR1.
  - Chaitanya says:
    
    July 18, 2019 at 4:13 PM
    
    Thank you very much.