EY Tax Alert CBDT notifies income tax return forms for tax year 2018-19 with substantive additional disclosure requirements

 
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8 April 2019

                                             EY Tax Alert
                                              CBDT notifies income tax
                                              return forms for tax year
                                              2018-19 with substantive
                                              additional disclosure
                                              requirements

Tax Alerts cover significant tax      Executive summary
news, developments and changes
                                      This Tax Alert summarizes the key amendments made to the Income Tax Return (ITR)
in legislation that affect Indian     forms for tax year 2018-19, vide Notification No. 32/ 2019 dated 1 April 2019
businesses. They act as technical     (Notification) issued by the Central Board of Direct Taxes (CBDT) [1]. The said Notification
summaries to keep you on top of       has also amended Rule 12 of the Income Tax Rules, 1962 (Rule 12) to restrict the scope of
                                      simplified ITR-1 Sahaj and ITR-4 Sugam to specified taxpayers, being resident in India. The
the latest tax issues. For more       new ITRs require substantive additional disclosures which are intended to enable the Tax
information, please contact your      Authority to make non-intrusive verification of financial data collected by the Tax Authority
EY advisor.                           through secondary sources.
                                    [1] Apex body of direct tax administration in India.
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                                                                          ► Taxpayer has brought forward loss or loss to be
Background                                                                  carried forward under any head of income
                                                                          ► Taxpayer is assessable for income on which tax
The CBDT, vide the Notification, has amended Rule 12, as                    has been deducted in another taxpayer’s name
also notified the ITR forms, for all categories of taxpayers for
tax year 2018-19 (Assessment Year 2019-20). However,                 Taxpayers who are disqualified from filing simplified tax
the instructions for filing the ITR forms are awaited.               return in ITR-1 or ITR-4 need to file their tax return in
                                                                     other ITR forms, as may be applicable which require
                                                                     more detailed disclosure requirements. Refer Annexure
Changes in Rule 12 – Scope of filing                                 1 which enlists the applicability of the ITR forms to
simplified ITRs by small taxpayers                                   various categories of taxpayers.
narrowed down
                                                                   Key changes in the ITR forms
Under the erstwhile Rule 12, small taxpayers could use
simplified ITRs with less disclosure requirements. The
requirements are as follows:                                       The key changes notified in the ITR forms applicable to tax
                                                                   year 2018-19 as compared to the immediately preceding
                                                                   tax year 2017-18 are summarized below.
►    Simplified ITR-1 can be filed by individuals (resident
     and ordinarily resident) who have income from salary
     or family pension, income from one house property or          1.0 Key changes which commonly apply to most of the
     income from other sources and the total income is upto            ITR forms:
     INR 5M.                                                            1.01 Capacity in which tax return filed by a
                                                                             representative taxpayer: If tax return is filed by
►    Similarly, ITR-4 Sugam can only be filed by individuals,                a representative taxpayer, capacity in which the
     Hindu undivided families (HUFs) and firms (other than                   representative is filing the return needs to be
     limited liability partnerships (LLPs)) who earn profits                 reported separately (Applicable to ITR forms -
     and gains from business and professions to which                        ITR 2, 3, 4, 5, 6, 7).
     presumptive tax provisions apply.
                                                                        1.02      Enhanced reporting for determination of
                                                                                  residential status of individuals: Instead of
 The amended Rule 12 further restricts scope of filing ITR-1                      taxpayer declaring himself as resident, non-
 and ITR-4 Sugam as follows:                                                      resident or not ordinarily resident, the new ITR
                                                                                  form requires furnishing of data of number of
►    Individual who is a resident and ordinarily resident                         days of physical stay in India during specified
     cannot file simplified ITR-1 for tax year 2018-19 under                      period based on which residential status is
     any of the following additional circumstances:                               determined. Additionally, if the individual
                                                                                  qualifies as a non-resident in India during the
    ►    Taxpayer claims deduction of expenses under the                          tax year, the new ITR form requires disclosure
         head “income from other sources” (IFOS) (other                           of the jurisdiction of his residence and taxpayer
         than standard deduction against family pension                           identification number therein. Further, if the
         income).                                                                 non-resident individual is a citizen of India or a
    ►    Taxpayer is a director in any company                                    person of Indian origin, total period of stay in
    ►    Taxpayer held any unlisted equity share at any time                      India during the tax year and during the
         during the tax year                                                      preceding four years also need to be reported
    ►    Taxpayer is assessable for income on which tax has                       (ITR 2, 3).
         been deducted in another taxpayer’s name                       1.03      Disclosure of taxable amount of accumulated
                                                                                  balance of recognized provident fund: In case
                                                                                  there is withdrawal of accumulated balance of
►    Similarly, the amended Rule 12 now restricts the scope                       recognized provident fund which is taxable at
     of filing ITR-4 Sugam to individuals and HUFs who are                        special rates involving redetermination of
     resident and ordinarily resident and firms (other than                       incomes and taxes of past years in which
     LLPs) who are residents. Previously, there was no                            contributions were made, the new ITR requires
     specific condition with respect to residential status for                    details of assessment year, income benefit and
     filing of ITR-4 Sugam. Additionally, the amended Rule                        tax benefit to be provided which forms the basis
     12 provides for further restrictions on eligibility to file                  of computing special rate of tax (ITR 2, 3, 5, 6,
     ITR-4 Sugam to the following categories of resident                          7[2]).
     individuals, HUFs and firms (other than LLPs):

     ► Taxpayer is a director in any company
     ► Taxpayer held any unlisted equity share at any time
       during the tax year
                                                                   [2] The disclosure for taxable portion of accumulated balance of recognized
     ► Taxpayer has total income above INR 5M
                                                                   provident fund in ITR 5, 6, 7 is not clear as those ITR forms do not apply to
     ► Taxpayer has income from more than one house                individual taxpayers
       property
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1.04 Additional details to be furnished if taxpayer is a         1.11      Break-up of monetary donations made in cash
     director in any company: If the taxpayer is a                         and other mode: Monetary donations made by
     director in a company at any time during the tax                      taxpayer and eligible for deduction under
     year, following details need to be furnished (ITR                     section 80G of the Income Tax Laws (ITL) need
     2, 3):                                                                to be bifurcated between donation made in
                                                                           cash[3] or in any other mode (like cheque or
       ►   Name and Permanent Account Number (PAN)
                                                                           electronic mode). (ITR 2, 3, 4, 5, 6)
           of the company
       ►   Whether shares of the company are listed or           1.12      Enhanced reporting in relation to foreign
           unlisted                                                        assets located outside India: Instead of
       ►   Director identification number                                  information about foreign bank accounts held,
                                                                           the new ITR forms require details of following
                                                                           assets held by resident taxpayers at any time
1.05   Enhanced reporting if unlisted equity shares are                    during the tax year in Schedule FA dealing with
       held during any time of the tax year: If the                        foreign assets and income from any source
       taxpayer held any unlisted equity shares at any                     outside India (ITR 2, 3, 5, 6, 7)
       time during the tax year, following details need to
       be furnished (ITR 2, 3, 5, 7):                                      ►    Details of Foreign Depository accounts
                                                                           ►    Details of Foreign Custodial accounts
       ►   Name and PAN of the company                                     ►    Details of Foreign Equity and Debt interest
       ►   Details of opening balance and closing                          ►    Details of Foreign Cash Value Insurance
           balance (no. of shares and cost of                                   Contract or Annuity Contract
           acquisition), shares acquired and transferred
           during the year (no. of shares and cost/sales
                                                                           Under each asset category, there is further
           consideration).
                                                                           reporting requirement such as details of
       ►   In relation to shares acquired during the year,
                                                                           country name and code, name and address of
           the taxpayer also needs to disclose date of
                                                                           institution, account number, date of opening
           purchase, face value of shares, issue price per
                                                                           the account, peak balance during the tax year,
           share in case of fresh issue and purchase
                                                                           closing balance, amount of interest/ amount
           price per share in case of secondary
                                                                           paid/ credit. In case of insurance contract,
           acquisition.
                                                                           cash/ surrender value of contract needs to be
                                                                           reported.
1.06   If the taxpayer is a partner in a firm, name of the
       firm and PAN needs to be disclosed separately
                                                                 1.13      Enhanced reporting in exempt income
       (ITR 5, 7).
                                                                           schedule (a) If net agricultural income exceeds
1.07   Enhanced reporting in case of transfer of                           INR 0.5M or (b) income is not chargeable as
       immovable property: In case of transfer of                          per Double Taxation Avoidance Agreement
       immovable property, details such as name and                        (DTAA) or (c) it is pass-through exempt
       PAN of the buyer, address of property and in case                   income:
       of more than one buyer, percentage share and
                                                                           ► In the schedule of exempt income, where
       amount of each buyer need to be reported (ITR 2,
                                                                             the net agricultural income exceeds INR
       3, 5, 6).
                                                                             0.5M, following details need to be reported
1.08   Enhanced break-up of incomes taxable at                               separately for each agricultural land (ITR 2,
       special rates of tax: Income chargeable at special                    3, 5, 6)
       rates needs to be disclosed separately such as
       interest received from infrastructure debt fund,                         (i) Name of district along with pin code
       dividends from Global Depository Receipts (GDRs)                         where agricultural land is situated
       purchased in foreign currency etc. (ITR 2, 3, 5, 6,
       7)                                                                       (ii) Measurement in acres
1.09   Break-up of interest income: Interest income
       earned needs to be bifurcated into interest                              (iii) Whether the land is owned or leased
       earned from savings bank, deposits, income tax                           and whether it is irrigated or rain fed
       refund, interest in the nature of pass-through
       income or others. (ITR 2, 3, 5, 6, 7)                               ► Further, pass-through income not
                                                                             chargeable to tax and income not
1.10   Break-up of certain specified incomes such as
                                                                             chargeable to tax as per DTAA also needs to
       dividend income, winning from lotteries, puzzle,
                                                                             be specifically reported in the schedule of
       races etc. which are taxed under Income from
                                                                             Exempt Income (ITR 2, 3, 5)
       other sources (IFOS): The new ITR forms require
       period wise break-up of specified incomes
       accrued or received during the year. The break-
       up period is aligned to the due dates of payment
       of advance tax (ITR 2, 3, 5, 6, 7).                   [3] It may be noted that S.80G does not permit deduction for donations in kind
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   1.14   Details of pass-through income received by             3.0 Key change in ITR-3 applicable to individuals and
          taxpayer from business trusts: In addition to              HUFs engaged in business or profession
          Schedule PTI dealing with pass-through income
                                                                    3.01   If the taxpayer is liable to audit under any law
          received from business trusts, such pass-through
                                                                           other than ITL, the relevant provision of that
          income in the nature of house property income,
                                                                           law under which audit is conducted and the date
          capital gains etc. need to be specifically disclosed
                                                                           of furnishing audit report needs to be reported.
          under respective head of income schedule in the
                                                                           (ITR 3)
          ITR form as also in the schedule of incomes taxed
          at special rates (ITR 2, 3, 5, 6, 7).                  4.0 Key changes in ITR-3, ITR-5 and ITR-6 in relation to
                                                                     presumptive taxation consequent to restricted
   1.15   Expenditure incurred in relation to exempt
                                                                     scope of ITR-4 Sugam
          income which is disallowed needs to be reported
          separately (ITR 3, 5, 6)                                  4.01   As a sequel to scope of ITR-4 Sugam being
                                                                           made more restrictive, other ITR forms viz. ITR-
   1.16   Where TDS credit relates to another person: In
                                                                           3, ITR-5 and ITR-6 have been suitably amended
          the TDS Schedule, it needs to be specified
                                                                           to provide for computation of income earned
          whether credit of tax deducted at source (TDS)
                                                                           from profits and gains of business and
          relates to taxpayer or other person and in case
                                                                           profession on presumptive basis.
          credit relates to another person, PAN of such
          person needs to be reported. Additionally, gross          4.02   Additionally, taxpayers engaged in the business
          amount of corresponding income offered against                   of plying, hiring and leasing goods carriage and
          which TDS has been claimed and relevant head of                  offering income on presumptive basis are
          income also needs to be disclosed (ITR 2, 3, 5, 6,               required to provide additional details such as
          7).                                                              motor vehicle registration number and tonnage
                                                                           capacity of goods carriage, whether they are
   1.17   Furnishing of PAN/ TAN of tenant is mandatory
                                                                           owned/ leased or hired and the number of
          if TDS credit on rent income is claimed by the
                                                                           months for which they have been owned/
          taxpayer: While computing house property
                                                                           leased or hired.
          income, taxpayer needs to mandatorily furnish
          PAN/ TAN of the tenant if credit for TDS on rent          4.03   In case where regular books of accounts are not
          income is claimed by the taxpayer. (ITR 2, 3, 5, 6,              maintained, details of gross receipts as
          7)                                                               bifurcated between receipts through specified
                                                                           banking modes and any other mode to be
   1.18   Insertion of Manufacturing Account and Trading
                                                                           reported.
          Account in addition to Profit and Loss Account:
          Statement of Profit and Loss has been bifurcated
          into Manufacturing account, Trading Account and
          Profit and Loss Account. Certain additional details    5.0 Key change in ITR-4 (Sugam) applicable to resident
          need to be furnished in the Manufacturing                  small taxpayers covered by presumptive tax
          Account such as details of direct wages, direct            provisions
          expenses and factory overheads. (ITR 3, 5, 6).            5.01   Insertion of Schedule 80G for donations made:
   1.19   New schedule inserted for donations made to                      Earlier, only the amount of donations eligible for
          research associations: Where donation is made                    deduction under section 80G of the ITL was to
          to research associations, details such as name,                  be disclosed. As per the new ITR form, further
          address and PAN of donee, amount of donation                     details of donation such as name, PAN, address
          made in cash and other modes and eligible                        of the donee, donation made in cash and other
          amount of donation need to be specifically                       modes and eligible amount of donation need to
          reported in Schedule RA. (ITR 3, 5, 6)                           be reported in Schedule 80G.

   1.20   New schedule inserted for donations made for           6.0 Key changes in ITR-5 applicable to firms/ LLPs/
          scientific research or rural development: Where            Association of Persons (AOPs)/ business trusts:
          donation is made for scientific research or rural         6.01   Applicability of ITR-5 to business trusts and
          development, details such as name, address and                   investment fund instead of ITR-7: ITR-7 is no
          PAN of donee, amount of donation made in cash                    more applicable to business trusts and
          and other modes and eligible amount of donation                  investment fund. Such taxpayers now need to
          need to be specifically reported in Schedule                     furnish their tax returns in ITR-5.
          80GGA. (ITR 2, 5, 6)
                                                                    6.02   In the computation of total income, profit-linked
                                                                           deduction claimed by units located in Special
2.0 Key change in ITR-1 Sahaj and ITR-4 Sugam                              Economic Zone, exempt income of business
    applicable to small taxpayers                                          trust and exempt income from investment fund
                                                                           need to be specifically reported.
   2.01 In addition to disclosure of self-occupied and let
        out property, ITR 1 and ITR-4 Sugam also give an
        option to disclose whether the property is
        deemed let out.
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    6.03      Details about start-up recognized by DPIIT[4]:             7.06      Additional disclosure of assets and liabilities at
              Taxpayer needs to disclose whether it is                             the end of the tax year by unlisted company
              recognized as start-up by DPIIT and if yes, start-                   and start up:
              up recognition number as allotted by DPIIT needs
                                                                                   Besides listing of assets and liabilities in the
              to be reported. Further, if certificate from inter-
                                                                                   balance sheet schedule, unlisted companies and
              ministerial board is received, certificate number
                                                                                   start-ups are also required to provide
              also needs to be provided.
                                                                                   exhaustive details in relation to various assets
                                                                                   and liabilities as under:
7.0 Key changes in ITR-6 applicable to corporate
    taxpayers
                                                                                      Nature of assets                  Details sought
    7.01      Date of commencement of business: In addition
              to date of incorporation of company, date of
              commencement of business also needs to be                              Listed and                    Complete movement
              disclosed.                                                             unlisted equity               of investment
                                                                                     shares, other                 (quantity and
    7.02      Details of business re-organization: In addition to                    securities and                amount) during the
              the existing details about business re-                                capital                       year which includes
              organizations such as name, PAN and address of                         contribution in               details of opening
              the other company under amalgamation/                                  other entities                and closing balance,
              demerger undertaken during the tax year, date of                                                     purchase and sale
              amalgamation/ demerger also needs to be
              reported.                                                              Loans and                     Party wise details
    7.03      Details of immediate and ultimate parent                               advances given                along with opening
              company to be furnished by foreign company:                            and received                  and closing balance,
              Foreign company is to report additional details                                                      amount received and
              such as name, address, country of residence,                                                         repaid during the
              PAN (if allotted) and unique identification of                                                       year, rate and
              respective country of its immediate and ultimate                                                     amount of interest
              parent company.
                                                                                     Land or building              Date and cost of
    7.04      Details about start-up recognized by DPIIT:                            or both (whether              acquisition, purpose
              Taxpayer needs to disclose whether it is                               residential or                of use
              recognized as “start-up” by DPIIT and if yes, start-                   not), other assets
              up recognition number as allotted by DPIIT needs                       such as motor
              to be reported. Further, if certificate from inter-                    vehicle, aircraft,
              ministerial board is received, certificate number                      yatch, jewelry,
              also needs to be provided.                                             archaeological
    7.05      Specific requirement for taxpayers being                               collections,
              unlisted companies and start-ups: Specified                            drawings,
              taxpayers are required to provide details of                           painting,
              shareholding during the year. It includes details                      sculptures or any
              such as name, residential status and PAN of the                        work of art or
              shareholder, type and number of shares held,                           bullion
              face value and issue price per share. These details
              are required to be reported for shareholders as
              on the last date of the tax year as also for the
                                                                                 In the context of start-ups, the above information
              shareholder who ceases to be shareholder during
                                                                                 needs to be furnished from the date of
              the tax year. Details of equity share application
                                                                                 incorporation up to end of the tax year and they
              money pending allotment at the end of the tax
                                                                                 also need to report if the specified asset has been
              year also needs to be reported.
                                                                                 transferred during the tax year. This additional
              Additionally, start-ups also need to provide the                   disclosure requirement in new ITR form for start-
              category of shareholder such as whether non-                       ups is in view of end-user restriction on funds
              resident or venture capital company or venture                     raised by start-ups by issue of shares to residents
              capital fund or specified company or any other                     under “green channel” route permitted by DPIIT
              person.                                                            and CBDT through recent Notifications for
                                                                                 addressing “angel tax” controversy[5].

                                                                     [5] Please refer our alert dated 20 Feb 2019 titled “Government of India
                                                                     expands definition of “start-up” and relaxes conditions for “angel tax”
[4] Department for Promotion of Industry and Internal Trade          exemption” for more details on “angel tax” controversy for start-ups
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   7.07   Disclosures in Goods and Services Tax (GST)            9.0 Changes to give effect to amendments in the ITL:
          schedule relaxed: The new ITR form requires
                                                                    9.01    Additionally, all the ITR forms also incorporate
          reporting of party-wise information regarding
                                                                            certain consequential modifications to give
          turnover/ gross receipt (annual value of outward
                                                                            effect to the amendments made by the Finance
          supply as per GST return) with its Goods and
                                                                            Act, 2018, which are effective from tax year
          Services Identification Number (GSTIN). In the
                                                                            2018-19. Illustratively, this includes:
          earlier year, for taxpayers not liable to tax audit,
          there was onerous requirement of reporting                        ► Details of standard deduction claimed
          break-up of total expenditure with entities                         against salary income
          registered under GST (whether expenditure                         ► Details of sale of listed equity shares in a
          relates to goods or services exempt under GST,                      company, units of equity oriented fund or
          entities covered by composition scheme and                          units of business trust on which securities
          other registered entities) and with entities not                    transaction tax has been paid
          registered under GST.

                                                                 10.0 Changes in mode or manner of filing of ITR:
8.0 Key changes in ITR-7 applicable to charitable trusts
    and other institutions, political parties                       10.01 All the ITR forms have to be mandatorily filed
                                                                          electronically, except ITR-1 (Sahaj) and ITR-4
   8.01   Information about registration or approval                      (Sugam), where super senior citizens of age 80
          under any law other than ITL: Taxpayers                         years and above have an option to file it in
          registered or approved under any law other than                 physical form.
          ITL are required to provide details of such
          registration which includes the law under which           10.02 For tax year 2017-18, individuals and HUFs
          registration or approval is obtained, date of                   having income up to INR 0.5m and not claiming
          registration, registration number and approving                 any tax refund were permitted to file return in
          authority.                                                      physical form. But for tax year 2018-19, even
                                                                          such taxpayers have to file their return
   8.02   Additional requirement for taxpayers being                      electronically.
          charitable institutions: Charitable institutions are
          required to provide source of funds to meet
          revenue and capital expenditure. The disclosure
          of source of funds is to be bifurcated between
                                                                           Comments
          income and borrowed funds, if any.
                                                                           The new ITR forms call for significantly enhanced
   8.03   Additional reporting requirement on few                          disclosure requirements. This complements with
          institutions: Few institutions such as research                  the ambitious project of the Tax Authority to use
          association, mutual funds, specified news                        Big Data Analytics tool to collate financial
          agencies, infrastructure debt funds, etc. who are                information from secondary sources (including
          eligible to claim exemption under the ITL have to                Exchange of Information with other countries) and
          disclose details of total receipts (including                    map against taxpayer’s profile to verify whether
          voluntary contributions), its application and                    the taxpayer has made proper disclosure of his/her
          accumulation during the tax year.                                incomes and assets. The comprehensive data
   8.04   Specific requirement for taxpayers being                         collected from ITR forms by way of self-disclosure
          unlisted companies: Unlisted companies are                       by taxpayers will be verified with financial
          required to provide details of shareholding during               information collected by the Tax Authority from
          the year. It includes details such as name,                      secondary sources resulting in non-intrusive
          residential status and PAN of the shareholder,                   verification. Any mismatches will be further
          type and number of shares held, face value and                   investigated through electronic interaction with
          issue price per share. These details are required                taxpayer through Centralised Processing Centre for
          to be reported for shareholders as on the last                   processing of returns and/or electronic scrutiny
          date of the tax year as also for the shareholder                 assessment.
          who ceases to be shareholder during the tax year.
          Additionally, details of equity share application                Considering the object with which comprehensive
          money pending allotment at the end of the tax                    data is being collected through ITR forms,
          year also is to be reported.                                     taxpayers will need to be cautious and vigilant to
                                                                           make proper and correct disclosures to avoid any
                                                                           omissions or misreporting. In particular, any
                                                                           default in reporting of foreign sources of incomes
                                                                           or foreign assets may invite severe adverse
                                                                           consequences of Black Money Act. Hence,
                                                                           taxpayers will need to plan their affairs to allocate
                                                                           more time for collating necessary information to be
                                                                           furnished in ITR well before respective due dates.
                                                                           Advance preparation will be key to timely and
                                                                           accurate compliance.
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Annexure 1
Applicability of ITR forms to various category of taxpayers

 Form        Category of taxpayers                 Applicability/ sources of income covered

 ITR-1       Individuals (resident and             Who can file ITR-1
             ordinarily resident)
 (Sahaj)                                            •   Has income from salaries or family pension, or
                                                    •   Income from one house property, or
                                                    •   Income from other sources
                                                   Who cannot file ITR-1
                                                    •   Who has an asset or signing authority in any account
                                                        outside India or earns income from any source outside
                                                        India, or
                                                    •   Who has claimed DTAA relief and/or unilateral double
                                                        tax relief, or
                                                    •   Has agricultural income above INR5,000, or
                                                    •   Has total income above INR5M, or
                                                    •   Has dividend income exceeding INR1M attracting super
                                                        rich dividend tax levy, or
                                                    •   Has unexplained credits or investment taxable at 60%
                                                        under the provisions of the ITL, or
                                                    •   Has capital gains or business income, or
                                                    •   Income from more than one house property or has
                                                        brought forward loss or loss to be carried forward
                                                        under the house property head, or
                                                    •   Income from lotteries or horse races or loss under the
                                                        other sources head
                                                    •   Who has claimed deduction of expenses under income
                                                        from other sources head. However, person who has
                                                        claimed deduction under other sources head against
                                                        family pension income can file ITR-1.
                                                    •   Who is director in any company
                                                    •   Who held any unlisted equity share at any time during
                                                        the tax year
                                                    •   Who is assessable for income on which tax has been
                                                        deducted in another taxpayer’s name

 ITR-2       Individuals and HUFs                   •   Has income from salaries, or
                                                    •   Income from house property, or
                                                    •   Capital gains, or
                                                    •   Income from other sources

 ITR-3       Individuals and HUFs                   •   Has income from business or profession

 ITR-4       Individuals and HUFs who are          When to file ITR-4 Sugam
 Sugam       resident and ordinarily resident,
             firms (other than limited liability    •   In case of profits and gains from business and
             partnerships (LLPs)) which are             professions to which presumptive tax provisions apply
             resident                                   (except in following cases)
                                                    Who cannot file ITR-4 Sugam
Page 8

Form    Category of taxpayers                 Applicability/ sources of income covered
                                               •   Who has an asset or signing authority in any account
                                                   outside India or has income from any source outside
                                                   India, or
                                               •   Who is a director in any company
                                               •   Who held any unlisted equity share at any time during
                                                   the tax year
                                               •   Has total income above INR5M, or
                                               •   Income from more than one house property or
                                               •   Has brought forward loss or loss to be carried forward
                                                   under any head of income, or
                                               •   Who is assessable for income on which tax has been
                                                   deducted in another taxpayer’s name
                                               •   Who has claimed DTAA relief and/or unilateral double
                                                   tax relief, or
                                               •   Has agricultural income above INR 5,000 or
                                               •   Has dividend income exceeding INR1M attracting super
                                                   rich dividend tax levy, or
                                               •   Has unexplained credits or investment taxable at 60%
                                                   under the provisions of the ITL

ITR-5   For firms/ LLPs/Association of         •   Income from house property
        Persons (AOPs)/ business trusts
                                               •   Capital gains
                                               •   Profits and gains from business and profession
                                               •   Income from other sources

ITR-6   Companies other than those filing      •   Income from house property
        ITR-7
                                               •   Capital gains
                                               •   Profits and gains from business and profession
                                               •   Income from other sources

ITR-7   Persons to furnish return of           •   Income from house property
        income in circumstances
        specifically provided for under        •   Capital gains
        the ITL viz., charitable trusts and    •   Profits and gains from business and profession
        other institutions, political
        parties, etc.                          •   Income from other sources
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