Important Amendments in ITR 1 and 4 that You Need to Know




The income tax department has recently notified new guidelines for the taxpayers. By following the latest amendments, the taxpayers are allowed to reconsider the pre-filling of ITRs very carefully. Along with this, the tax assessee has to verify the pre-filled data and add any additional or other taxable income which has not been pre-filled. Consequently, the tax authority has also modified the income tax return preparation software and schema for AY 2019-20.

Below are the changes made by the Income Tax e-filing portal that has cautioned the taxpayers to note the followings in connection with pre-filling of ITRs-
·        Taxpayers should verify the pre-filled data and add any other taxable income which is not pre-filled.

·        The last date for filing of TDS statement and the issue of TDS certificate by Deductor is 30th June 2019 and 10th July 2019 respectively. In case the TDS data is not pre-filled, taxpayers are expected to fill these details themselves.

Another Key Changes in the ITR Filing:
Changes in Income Tax Return Preparation Software and Schema-
·        Already saved draft data will not be available in case of Online ITR 1 & 4
·        In case of Offline utilities, XML has to be re-generated using the latest Income Tax Return Preparation Software.

How pre-filing of income tax is a hassle-free process?
The process of itr filing become a lot easier as comparison to the previous procedure of E-filing ITR. Last year, the tax department decided to introduce pre-filled files through which the information already available with it, hence it has made the tediousness of ITR filing chore hassle free.

In pre-filing of ITR, the Data available from entities that tax deducted at sources such as employers and banks would be used to offer pre-filled tax return forms to people detail such as income, income sources, and personal details as well as bank informationwould be filled up by the CBDT department.

According to the Livemint article, about 80-90% of taxpayers have only salary income and very few have other sources of income. Offering pre-filled income tax return forms will increase compliance and lessen the burden on small taxpayers.

In pre-filing of ITR, the Data available from entities that tax deducted at sources such as employers and banks would be used to offer pre-filled tax return forms to people detail such as income, income sources, and personal details as well as bank informationwould be filled up by the CBDT department.


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