Remember the last time you filed your income tax return (ITR)? If it was for the assessment year (AY) 2020-21 or earlier, then you might have used ITR-1 or ITR-2. But, if you are filing your return for AY 2019-20 or later, then you will have to use ITR-U.
1) Who can file: Only individuals who have a total income of up to Rs 50 lakh from salaries, one house property, other incomes such as interest income, family pension etc. can file ITR-1. All others must use ITR-2. This includes individuals with multiple houses, capital gains etc.
2) Capital gains: While you could report short term and long-term capital gains in both forms earlier, from this year onwards only long-term capital gains can be reported in ITR-1. Short term capital gains will have to be reported using ITR-2.
3) Tax audit: If you are required to get your accounts audited under section 44AB of the Income Tax Act, then you will have to file ITR-2.
4) Foreign assets and income: If you have any foreign assets or earn any foreign income, then you will have to file ITR-2.
ITR-U is a new income tax return form introduced by the Indian Revenue Department for AY 2019-20 and later. The main difference between ITRs filed in previous years and this year’s returns will be that while earlier you could file your returns without verifying them using an electronic verification code (EVC), now it will be mandatory to verify all ITRs with EVC.
There are 7 ITR forms for the AY 2019-20:
ITR-1 (Sahaj): For individuals having income from salary, one house property, other sources (interest etc.) and whose total income does not exceed Rs 50 lakh.
ITR-2: For individuals and HUFs not having income from business or profession.
ITR-3: For individuals and HUFs having income from business or profession.
ITR-4 (Sugam): For presumptive businesses and professionals with a turnover of less than Rs 1 crore. The tax return form has been amended to allow people to file ITR even if they have sold only one house during the financial year as against two in the previous years. This will benefit home buyers who had availed interest subsidy under Pradhan Mantri Awas Yojana scheme. Also, unlike last year, assessees won’t have to attach their balance sheet and profit & loss account while filing this form.
ITR-5: For firms, LLPs, AOPs etc.
ITR-6: For companies other than companies claiming exemption under section 11.
ITR-7: For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D).
ITR-U is a self-declaration form that is used for filing income tax returns. This form can be used by individuals who have an annual income of up to Rs 5 lakh and do not have any complex financial transactions.
The main purpose of ITR-U is to help the government collect data about the incomes of different sections of society. This information can then be used for policymaking and other purposes.
ITR-U is also used to calculate the tax liability of an individual. This is done by taking into account the income and deductions claimed by the taxpayer.
You will need to have the following information handy while filing ITR-U:
1) PAN number
2) Bank account details
3) Details of income and deductions
4) Details of any tax payments made during the year
After logging into the e-filing portal, you will be required to select ITR-U from the list of Income Tax Returns. Once you have selected ITR-U, you will be able to fill in the necessary information and upload the required documents. After your return has been filed, you will receive an acknowledgement number which can be used to track the status of your return.
1) It is a simple and easy to use form.
2) It can be filed online, which makes the process more convenient.
3) It helps the government collect data about the incomes of different sections of society.
4) It is used to calculate the tax liability of an individual.
5) It helps in identifying the eligible taxpayers.
6) It can be used to claim refunds, if any.
7) It helps in creating a database of taxpayers.
8) It is helpful in detecting tax evasion and fraud.
1) You may have to pay penalties if you do not file your return on time.
2) You may miss out on any refunds that you are entitled to.
3) Your tax liability may increase if you do not file your return on time.
4) You may face difficulties in getting loans and other financial products if you do not have a good tax history.
5) You may be subject to criminal prosecution if you do not file your return on time.
What is ITR-U?
ITR-U, or Income Tax Return – Unverified return, is a new income tax return form introduced by the Indian Revenue Department for AY 2019-20 and later. The main difference between ITRs filed in previous years and this year’s returns will be that while earlier you could file your returns without verifying them using an electronic verification code (EVC), now it will be mandatory to verify all ITRs with EVC.What are the differences between ITR-1 and ITR-2?
There are several key differences between these two types of income tax returns:1) Who can file: Only individuals who have a total income of up to Rs 50 lakh from salaries, one house property, other incomes such as interest income, family pension etc. can file ITR-1. All others must use ITR-2. This includes individuals with multiple houses, capital gains etc.
2) Capital gains: While you could report short term and long-term capital gains in both forms earlier, from this year onwards only long-term capital gains can be reported in ITR-1. Short term capital gains will have to be reported using ITR-2.
3) Tax audit: If you are required to get your accounts audited under section 44AB of the Income Tax Act, then you will have to file ITR-2.
4) Foreign assets and income: If you have any foreign assets or earn any foreign income, then you will have to file ITR-2.
What is ITR-U?
As mentioned earlier, ITR-U is a new income tax return form introduced by the Indian Revenue Department for AY 2019-20 and later. The main difference between ITRs filed in previous years and this year’s returns will be that while earlier you could file your returns without verifying them using an electronic verification code (EVC), now it will be mandatory to verify all ITRs with EVC.ITR-U is a new income tax return form introduced by the Indian Revenue Department for AY 2019-20 and later. The main difference between ITRs filed in previous years and this year’s returns will be that while earlier you could file your returns without verifying them using an electronic verification code (EVC), now it will be mandatory to verify all ITRs with EVC.
There are 7 ITR forms for the AY 2019-20:
ITR-1 (Sahaj): For individuals having income from salary, one house property, other sources (interest etc.) and whose total income does not exceed Rs 50 lakh.
ITR-2: For individuals and HUFs not having income from business or profession.
ITR-3: For individuals and HUFs having income from business or profession.
ITR-4 (Sugam): For presumptive businesses and professionals with a turnover of less than Rs 1 crore. The tax return form has been amended to allow people to file ITR even if they have sold only one house during the financial year as against two in the previous years. This will benefit home buyers who had availed interest subsidy under Pradhan Mantri Awas Yojana scheme. Also, unlike last year, assessees won’t have to attach their balance sheet and profit & loss account while filing this form.
ITR-5: For firms, LLPs, AOPs etc.
ITR-6: For companies other than companies claiming exemption under section 11.
ITR-7: For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D).
The purpose of ITR-U
Please note that ITR-U is for unverified returns only. This means that you cannot file a verified return using this form. If you want to file a verified return, then you will have to use ITR-V.ITR-U is a self-declaration form that is used for filing income tax returns. This form can be used by individuals who have an annual income of up to Rs 5 lakh and do not have any complex financial transactions.
The main purpose of ITR-U is to help the government collect data about the incomes of different sections of society. This information can then be used for policymaking and other purposes.
ITR-U is also used to calculate the tax liability of an individual. This is done by taking into account the income and deductions claimed by the taxpayer.
How to file ITR-U
Completing and filing ITR-U is a simple process that can be done online. All you need to do is log into the e-filing portal of the Income Tax Department and follow the instructions given there.You will need to have the following information handy while filing ITR-U:
1) PAN number
2) Bank account details
3) Details of income and deductions
4) Details of any tax payments made during the year
After logging into the e-filing portal, you will be required to select ITR-U from the list of Income Tax Returns. Once you have selected ITR-U, you will be able to fill in the necessary information and upload the required documents. After your return has been filed, you will receive an acknowledgement number which can be used to track the status of your return.
Who can use ITR-U?
Only individuals who have an annual income of up to Rs 5 lakh can file ITR-U. This form cannot be used by companies, firms, trusts, etc.Advantages of filing ITR-U
Here are some of the advantages of filing ITR-U:1) It is a simple and easy to use form.
2) It can be filed online, which makes the process more convenient.
3) It helps the government collect data about the incomes of different sections of society.
4) It is used to calculate the tax liability of an individual.
5) It helps in identifying the eligible taxpayers.
6) It can be used to claim refunds, if any.
7) It helps in creating a database of taxpayers.
8) It is helpful in detecting tax evasion and fraud.
Disadvantages of not filing ITR-U
While there are many advantages of filing ITR-U, there are also some disadvantages of not filing ITR-U. These include:1) You may have to pay penalties if you do not file your return on time.
2) You may miss out on any refunds that you are entitled to.
3) Your tax liability may increase if you do not file your return on time.
4) You may face difficulties in getting loans and other financial products if you do not have a good tax history.
5) You may be subject to criminal prosecution if you do not file your return on time.
