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Taxes

Filing ITR-1 this year? You must know about these changes


Filing ITR-1 this year? You must know about these changes

Changes in reporting of exempted incomes

In last year's ITR-1, you were required to report exempted incomes under the head 'Taxes Paid and Verification'. However, this year, these incomes will have to be reported under the tab, 'Computation of income and taxes'. Wadhwa says, "This is now a coherent replacement as it belongs to income schedules only. 

In addition to that, last year, while reporting exempted incomes, you were required to report tax-exempt portion of allowances such as HRA (house rent allowance) received from your employer, under this head. This year, tax-exempt portion of allowances received will be reported while filling salary details in ITR-1. 

Validating your bank account on e-filing website for faster credit of tax refunds

The income tax department has decided to issue only e-refunds from March 1, 2019. E-refunds will be issued to only those bank accounts that are validated on the e-filing website and are linked with filer's PAN. 

If your PAN is not linked with your bank account or your bank account is not validated on the e-filing website of the income tax department, then it is likely your tax refunds will be delayed

Choosing of verification option

When filing ITR-1 in the previous year, while selecting details such as ITR form, assessment year and so on, you were also required to choose the ITR verification option with which you will be verifying your ITR. 

However, this year, this option has been moved under the 'Taxes Paid and Verification' head. Once the ITR-1 form on the website is filled with all the required details, then you will have to choose the option with which you want to verify your ITR. Wadhwa says, "Earlier, verification method was asked at the time of selecting or uploading the relevant ITR form. This is now a logical placement of 'Verification' options." 

However, if you are filing your ITR using Excel utility, i.e., by uploading an XML file, then you are required to choose the verification option while selecting details such as ITR form as mentioned above. 

Detailed break-up of donation made under section 80G

If you have made any donations in FY 2018-19, then you will be required to provide the detailed break-up of how much of it was in cash and how much using banking channels.