Thursday, 4 June 2020

New Income Tax Return Forms effective from Financial year 2019-20/ Assessment year 2020-21.


Central Board of Direct Taxes (CBDT) has notified the new Income Tax Return (ITR) forms for FY 2019-20/ AY 2020-21 (i.e. ITR 1 Sahaj, 2, 3, 4 Sugam, 5, 6, 7 and ITR-V), vide Income-Tax (12th Amendment) Rules, 2020.

Few key changes notified in the Income Tax Returns (ITR) for the F/Y 2019-2020:
  • House ownership: Individual taxpayers who are joint owners of house property cannot file ITR 1 or ITR 4, from now on wards.
  • Passport: You have to disclose the Passport number if held by the taxpayer. This is to be furnished both in ITR 1-Sahaj and ITR 4-Sugam. Hopefully, it will be made mandatory in other ITR Forms as and when they are notified.
  • Cash deposit: For those filing ITR 4-Sugam, it has been made compulsory to declare the amount deposited as cash in a bank account, if such amount exceeds Rs 1 crore during the FY.
  • Foreign travel: If you have spent more than Rs 2 lakh on travelling abroad during the FY, you need to disclose the actual amount spent.
  • Electricity Bill: If your electricity bills have been more than Rs 1 lakh in aggregate during the FY, you need to disclose the actual amount.
  • Subsequent Investment details: Details of investment/ expenditure qualifying for deduction under chapter VIA with bifurcation of details of investment/ expenditure made during the period from April 1, 2020 to June 30, 2020. Details of payment/ acquisition/ purchase/ construction for the purpose of claiming under section 54 to 54GB, utilized between April 1, 2020 to June 30, 2020. Information regarding compliance of conditions during April 1, 2020 to June 30, 2020 for claiming deduction under section 10AA. A new schedule “Schedule DI” has been added.
  • In ITR-4, PAN number is made optional if the Aadhaar number is provided; in section 44AD, one new clause has been added as the electronic mode in addition to electronic clearance and reduced the presumptive income from 8% to 6%. In section 44AE for presumptive income from goods carriages, the ceiling of maximum row is removed and a new validation “Number of vehicles should not exceed 10 vehicles at any time during the year” is added.  

Find attached CBDT notification of ITR forms: ITR 1 to ITR 7 

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