CBDT notifies New Income Tax Return Forms for AY 2021-22

The Central Board of Direct Taxes has notified Income Tax Return Forms (ITR Forms) for the Assessment Year 2021-22 vide Notification no.21/2021 dated 31.03.2021. Keeping in view the ongoing crisis due to COVID pandemic and to facilitate the taxpayers, no significant change have been made to the ITR Forms in comparison to the last year’s ITR Forms. Only the bare minimum changes necessitated due to amendments in the Income-tax Act, 1961 have been made.

ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler Forms that cater to a large number of small and medium taxpayers. Sahaj can be filed by an individual having income upto Rs. 50 lakh and who receives income from salary, one house property / other sources (interest etc.). Similarly, Sugam can be filed by individuals, Hindu Undivided Families (HUFs) and firms (other than Limited Liability Partnerships (LLPs)) having total income upto Rs. 50 lakh and income from business and profession computed under the presumptive taxation provisions.

Individuals and HUFs not having income from business or profession (and not eligible for filing Sahaj) can file ITR-2 while those having income from business or profession can file ITR Form 3. Persons other than individual, HUF and companies i.e. partnership firm, LLP etc. can file ITR Form 5. Companies can file ITR Form 6. Trusts, political parties, charitable institutions etc. claiming exempt income under the Act can file ITR-7.

There is no change in the manner of filing of ITR Forms as compared to last year.

The CBDT has amended Rule 12 of the Income Tax Rules,1962 to incorporate the following changes related to ITR forms for the AY 2021-22 :

(a) in the opening portion, for the figure “2020”, the figure “2021” shall be substituted;

(b) in clause (a), in the proviso,–

(i) in sub-clause (v), the word “or” shall be omitted;

(ii) after sub-clause (vi), the following sub-clauses shall be inserted, namely:–

“(VII) is a person in whose case tax has been deducted under section 194N; or

(VIII) is a person in whose case payment or deduction of tax has been deferred under sub-section (2) of section 191 or sub-section (1C) of section 192;”;

(c) in clause (ca), in the proviso, after sub-clause (V), the following sub-clause shall be inserted, namely:-

“(VI) has income of the nature specified in clause (vi) of sub-section (2) of section 17 on which tax is payable or deductible, as the case may be, under sub-section (2) of section 191 or sub-section (1C) of section 192;.”

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