Income Tax Return Forms for AY 2020-21 notified

The Central Board of Direct Taxes (CBDT)  amended the return forms and manner of furnishing return of Income for the Assessment Year 2020-21 vide  Notification No. 31/2020 dated 29-05-2020. 

The amendment came to be known as Income-tax (12th Amendment) Rules, 2020.

The amendment relates to Rule 12 of Income Tax Rules 1962 wherein, “Clause clause (a), in the proviso, in item (V), the word ‘or’ shall be inserted at the end and the items (VII) and (VIII) shall be omitted.”

Further, the notification provides for the substitution of “Form Sahaj (ITR-1), Form ITR-2, Form ITR-3, Form Sugam (ITR-4), Form ITR-5, Form ITR-6, Form ITR-7, and Form ITR-V” .

The Summary of Income Tax Return Forms is as under :

• FORM ITR I Sahaj is for individuals being a resident (other than not ordinarily resident) having total income up to Rs.50 lakh, having Income from Salaries, one house property, other sources (Interest, etc.), and agricultural income up to Rs.5 thousand and Not for an individual who is either Director in a company or has invested in unlisted equity shares.

• FORM ITR-2 is for Individuals and HUFs not having income from profits and gains of business or profession.

• FORM ITR-3 is for individuals and HUFs having income from profits and gains of business or profession.

• FORM ITR-4 Sugam is for individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs.50 lakh and having income from business and profession which is computed under section 44AD, 44ADA or 44AE and not for an individual who is either Director in a company or has invested in unlisted equity shares.

• FORM ITR-5 is for persons other than an individual,  HUF, company, and person filing Form ITR-7.

• FORM ITR-6 is For Companies other than companies claiming exemption under section 11.

• FORM ITR-7 is for persons including companies required to furnish return under Sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only.
   

Changes in ITR forms for FY 2019-20 or AY 2020-21:

• If you have taxable income as dividend from domestic companies, you are not eligible to file ITR-1 form.
• Those with joint ownership of a house property cannot file ITR-1 or ITR-4.
• Taxpayers need to answer the following questions related to deposits in current accounts, foreign travel and electricity bills in all the ITR forms:

a) “Have you deposited an amount or aggregate of amounts exceeding Rs. 1 Crore in one or more current account during the previous year?"

b) “Have you incurred expenditure of an amount or aggregate of amount exceeding Rs. 2 lakhs for travel to a foreign country for yourself or for any other person?"

c) “Have you incurred expenditure of amount or aggregate of amount exceeding Rs. 1 lakh on consumption of electricity during the previous year?"

• The income tax department has allowed taxpayers the laxity of making certain tax saving investments for FY 2019-20 till 30th June 2020 in view of the coronavirus lockdown. Deductions under Chapter-VIA-B of IT Act which includes Section 80C (LIC, PPF, NSC, etc), 80D (mediclaim) and 80G (donations) will now be allowed for spending till June 30th. The dates for making investment, construction or purchase for claiming roll over benefit in respect of capital gains under sections 54 to section 54GB has also been extended to June 30.

The new ITR forms seek details of all these investments and payments made in between April and June for claiming tax deduction.

Finance Minister Nirmala Sitharaman had recently extended the last date for filing of all ITRs for 2019-20 to November 30, 2020 due to the lockdown.

Earlier, individuals and other non-corporate taxpayers not subject to tax audit or transfer pricing are required to file ITR by July 31.

  Report