Rule 12 of the Income Tax Rules, 1962

The Central Board of Direct Taxes, vide notification no. 32/2019 dated 1st April 2019, introduced the Income Tax (Second Amendment) Rules, 2019 which are made effective from 1st April 2019. Vide the said Income Tax (Second Amendment) Rules, 2019, rule 12 of the Income Tax Rules, 1962 has been amended and format of Form ITR-1 (SAHAJ), Form ITR-2, Form ITR-3, Form ITR-4 (SUGAM), Form ITR-5, Form ITR-6, Form ITR-7 and Form ITR-V has been updated. In this article, we look at the various changed introduced by the new Rule 12 of the Income Tax Rules, 1962.

Form ITR-1 (Sahaj)

With effect from 1st April 2019, additionally, the following categories of person will not able to a file income tax return in Form ITR-1:

• Individuals claiming deduction under section 57 (other than deduction claimed under section 57 (iia);
• Individuals being the director in any company;
• Individual holding unlisted equity shares at any time during the previous year;
• Individual who is assessable for the whole or part of the income on which TDS has been deducted in the hands of a person other than the assessee.

Form ITR-4 (Sugam)

With effect from 1st April 2019, additionally, the following categories of person will not able to file a return in Form ITR-4 i.e. SUGAM

• The person who has assets located outside India (assets includes financial interest in any entity);
• The person having signing authority in any account being located outside India;
• The person having income from any of the source outside India;
• The person having the income to be apportioned as per provisions of section 5A;
• Person being director in any company;
• The person holding any unlisted equity shares at any time during the previous year;
• The person having total income more than INR 50 Lakhs;
• The person who is the owner of more than one house property and the income of such house property is chargeable under the head ‘Income from House Property’;
• The person who is assessable for the whole or part of the income on which TDS has been deducted in the hands of a person other than the assessee.

Amendment in Mandatory Electronic Filing of Income Tax Return

As all are aware, electronic filing of income tax return is mandatory, however, the following categories of persons are exempted from the same –

• An individual having an age of 80 or more at any time during the previous year; and
• An individual who is furnishing a return of income in Form ITR-1 (SAHAJ) or Form ITR-4 (SUGAM).

The above categories of person can file their return of income in any of the following manner –

• Electronically under digital signature;
• Filing the return electronically under EVC (electronic verification code);
• Filing the return electronically and submitting the verification of return in Form ITR-V; or
• Filing the return in paper form.