After initially notifying the ITR1 and ITR-4 on 3rd January 2020, the Central Board of Direct Taxes has been notified of all the ITR Forms on 29th May 2020. Although, you have to wait for the return filing facility to be activated on the e-filing portal to file your Income Tax Return for the Assessment Year 2020-2021. Unlike the practice so far, the return cannot be filed either in ITR-1 or ITR4 if an individual taxpayer is a joint-owner in the house property, or who has deposited more than Rs 1 crore in a bank account or has incurred annual expenses of Rs 2 lakh or Rs 1 lakh on foreign travel or electricity respectively. Similarly, if you’ve got incurred an expenditure of amount or aggregate of the quantity exceeding Rs 1 lakh on the consumption of electricity during the previous year, you have to disclose the amount in ITR 4. Also, mentioning the passport number is essential, if an individual taxpayer has a valid Indian passport. As the Financial Year 2019-2020 has ended in the midst of the nationwide lockdown to contain the spread of the corona virus, many tax-payers faced hardship in making last-minute tax-saving investments/expenditures, resulting in an extension in the compliance deadline from 31st March 2020, to 30th June 2020.
In case you’ve got made any investments or incurred expenditures that qualify for tax-saving purposes during the extended period, you’ve got to disclose an equivalent separately within the newly notified ITR Forms that including ITR-1 and ITR-4 to get benefits of the deductions. “In order to say deduction under chapter VI A in AY 2020-21 in respect of certain investments made or expenditure incurred during April 1, 2020, to June 30, 2020, new ITR form has inserted a new table in which taxpayer is required to provide details of such investments,” as Gopal Bohra the Partner, NA Shah Associates LLP said. The amounts of investments or expenditures to be mentioned separately are u/s 80C, 80CCC deduction in respect of contribution to certain pension funds, 80CCD(1) employee’s mandatory contribution to NPS, 80CCD(1B) voluntary contribution to Tier-1 Account of NPS, 80CCD(2) employer’s contribution to NPS, 80D health insurance premium, 80DD deduction in respect of maintenance including medical treatment of a dependent who is a person with a disability, 80DDB deduction in respect of medical treatment, etc, 80E interest on loan taken for higher education, 80EE interest on loan taken for affordable residential house property, 80EEA and 80EEB (interest on loan taken surely house property), 80G (donations to certain funds, charitable institutions, etc), 80GG (rents paid), 80GGA (certain donations for research project or rural development) and also 80GGC (contributions given by any person to political parties). “Similarly, new ITR forms provide a separate column for amounts utilized towards purchase/construction on the new property during April 1, 2020, to June 30, 2020, to say deduction under section 54/54B/54F/etc. against a capital gain in AY 2020-21,” added Bohra.