You Should Know the 6 Major Changes before filing Income Tax Return for the F.Y. 2019-20

The Central Board of Direct Taxes (CBDT) has notified Income Tax Return forms ITR 1 to ITR 7 for the Financial Year 2019-20 (Assessment Year 2020-21), vide Income-Tax (12th Amendment) Rules, 2020

Types of ITR Forms ?

FormDescription
ITR1For Individuals being a Resident (other than Not Ordinarily Resident) having Total Income up to Rs.50 lakhs, having Income from Salaries, One House Property, Other Sources (Interest, etc.), and Agricultural Income up to Rs.5000/- (Not for an individual who is either Director in a company or has invested in Unlisted Equity Shares)
ITR 2For Individuals and HUFs not having income from profits and gains of business or profession
ITR 3For individuals and HUFs having income from profits and gains of business or profession
ITR 4For Individuals, HUFs and Firms (other than LLP) being a Resident having Total Income up to Rs.50 lakhs and having income from Business and Profession which is computed under sections 44AD, 44ADA or 44AE
(Not for an individual who is either Director in a company or has invested in Unlisted Equity Shares)
ITR 5For persons other than:-
(i) Individual,
(ii) HUF,
(iii) Company and
(iv) Person filing Form ITR-7
ITR 6For Companies other than companies claiming exemption under section 11
ITR 7For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D)
ITR -VWhere the data of the Return of Income in Form ITR-1, ITR-2, ITR3, ITR-4, ITR-5, ITR-7 filed but NOT verified electronically.

6 Major changes in ITR forms for the F.Y. 2019-2020:-

(1.) House ownership: Individual taxpayers who are joint owners of house property cannot file ITR 1 or ITR4.

(2.) Passport Number: One needs 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.

(3.) 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.

(4.) Foreign travel: If you have spent more than Rs 2 lakh on traveling abroad during the Financial Year, you need to disclose the actual amount spent.

(5.) Electricity consumption: If your electricity bills have been more than Rs 1 lakh in aggregate during the Financial Year, you need to disclose the actual amount.

(6.) Investment details: Details of investment qualifying for deduction under chapter VIA with the bifurcation of details of investment made during the period from April 1, 2020, to June 30, 2020.

Note:- The new CBDT notification announces rule changes in the Income Tax Rules, 2020. Taxpayers including individuals, HUF, professionals, and businesses, will now be able to avail benefits of savings or investments made from April 1 to June 30, following the ITR filing extension provided by the finance ministry owing to COVID 19 pandemic.

Conclusion:-

ITR-1 (Sahaj) can now be filed by following who have to file ITR even if income is not taxable ;

  1. Deposit in Current account of 1 crore or more
  2. Payment of electricity bills of 1 Lakh
  3. Foreign travel of 2lac or more. (Amendment of Rule 12)

ITR-1 (Sahaj)/ ITR-4 (Sugam) can now also be filed by Joint Owner of House Property.

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