Income Tax

list of the 5 key changes, including the one mentioned above, introduced in the ITR1 for the financial year 2019-20. Passport details In this year's ITR-1, taxpayers will have to provide their passport number (if they have one). This is a new addition. Last year in July 2019 Budget, it was announced that those who have incurred expenses of Rs 2 lakh or more for foreign travel either on himself or any other person, will have to mandatorily file ITR. TAN of your employer This year's ITR-1 asks for detailed information of your employer. Until last year, a taxpayer simply had to select the nature of employment, i.e., Government, PSU, Pensioners, Others from a drop-down menu in case of ITR 1. From this year, those filing ITR1 will have to provide the Tax Deduction Account Number (TAN) of the employer, mandatory if tax is deducted. Other details required are name, nature, address of the employer. According to the notified form, these details will be pre-filled automatically, once TAN

What are Micro, Small and Medium Enterprise? The existing MSME classification was based on the criteria of investment in plant and machinery or equipment. So, to enjoy the MSME benefits, the MSMEs have to limit their investment to a lower limit, as mentioned below:                                 Existing MSME Classification Sector Criteria Micro Small Medium Manufacturing Investment  < Rs.25 lakh < Rs.5 crore < Rs.10 crore Services Investment  < Rs.10 lakh < Rs.2 crore < Rs.5 crore These lower limits are killing the urge to grow as they are unable to scale their businesses further. Also, there has been a long-pending demand for the revision of MSME classification so that they can further expand their operations while continuing to avail the MSME benefits. Now, under the  Aatmanirbhar Bharat Abhiyan  (ABA), the government revised the MSME classification* by inserting composite criteria of both investment and annual turnover. Also, the distinction between the manufactu