Changes made in Income Tax Returns for financial year 2018-19 (assessment year 2019-20)

The due date to file the income tax returns for financial year 2018-19 is approaching (31 July 2019, 30 September 2019 and 30 November 2019).  The tax return forms have been released with some major changes. The below points will help you in collating the information required for your tax return filing. 


  • If an individual is a director of any company (listed or unlisted) or has investments in unlisted company, he cannot file ITR 1 unlike last year.  Individual will need to disclose detailed information regarding his holding in each company (PAN of the company, number of shares taken during the year, opening balance, number of shares sold and closing balance).  Directorship details will also be required to be given.
  • If an individual’s income includes income of any other person on which tax has been deducted, he cannot use ITR 1 for the current filing
  • If there is any expense o be claimed against the income from other sources, an individual cannot use ITR 1 (family pension excluded)
  • For last year, individual could use ITR 4 without restriction of monetary limit.  For current year, if the taxable income is more than Rs 50 lakh, one needs to use ITR 3.
  • ITR 4 can be used only by resident individuals unlike last year
  • ITR 3 can be used by all individuals who cannot use ITR 1, ITR 2 or ITR 4
  • Additional information needs to be furnished by non residents/not ordinarily residents about history of stay in India for determining the residential status.
  • TAN/PAN of the tenant needs to be given for rental income earned where tax has been deducted.  Same is the case with a property sale where tax has been deducted
  • The individuals whose taxable income does not exceed Rs 5 lakh and who are not claiming any refund were allowed till last year to file a paper return.  However, this category will now be required to file online return only. Thus only the very senior citizens using ITR 1 or ITR 4 now can file the paper return.
  • Break up of salary income will be required to be given – gross salary, exempt allowances, detailed deductions under section 16 and chargeable salary.


  • Profit and loss account is to be separated into manufacturing, trading and profit and loss account.  The department can obtain the details of gross profit and net profit ratios from this.
  • Details of agricultural land like district name and pin code of each agricultural land, measurement, owned or leased, irrigated or rain-fed are to be given
  • Detailed information of shareholders need to be given by unlisted companies
  • Turnover as per GST return and annual value of outward supplies will need to be provided
  • Donations bifurcation is required to be given as in cash/other mode

Implications if the tax return is not filed in time:

  • Penalty between INR 1,000 to INR 10,000 becomes applicable on a late return.
  • Loss cannot be carried forward if the return is filed late.
  • Interest is applicable at 1% per month on the due taxes till the time the tax is paid.
  • If there is a refund on the return, there would be a delay to get this as the return will be processed late.