The Central Board of Direct Taxes (CBDT) has been 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, in line with the amendments that made by the Finance Act, 2019, as according to CA Club.
“This year, because of the exceptional circumstances, the Dept. has notified all ITR forms within the last week of May. The Department has notified the forms without the return filing utility. A taxpayer, who is required to file the return, cannot do so until the return filing facility is formed available on the e-filing portal,” as told by, CA Naveen Wadhwa, DGM, Taxmann.
“When the ITR Forms (ITR 1 and ITR 2) were notified in January 2020, Rule 12 was amended to supply that ITR-1 can’t be employed by an individual falling under two categories, First, who owns a house property in joint-ownership and second, who has entered into specified transactions mentioned within the seventh proviso to section 139(1), payment of electricity bill in more than Rs 1 lakh, a deposit of quite Rs 1 crore during a accounting . However, an individual falling under the second category is allowed to furnish a return in ITR-4,” that informs Wadhwa. The recent notification maintains the status-quo by removing those prohibitions. Thus, a person owning a property in joint-ownership or covered under the seventh proviso can file return in ITR-1 or ITR-4 if they fulfill other conditions.
Income Tax Return 1 Sahaj: this type is for people being a resident (other than not ordinarily resident) having total income up to Rs 50 lakh, having Income from salaries, one house property, and agricultural income up to Rs 5000 that not for a private who is either a director during a company or has invested in unlisted equity shares.
ITR 2: This form is for the individuals and HUFs not having the income from profits and gains of business or professionals well.
ITR 3: For individuals and also HUFs having income from profits and gains of business/ profession.
ITR 4 Sugam: for people , HUFs and Firms (other than LLP) being a resident having a complete income up to Rs 50 lakh and having income from business and profession that is computed under sections 44AD, 44ADA or 44AE.
ITR 5: For persons other than individual, HUF, company, and the person filing Form ITR-7.
ITR 6: For the Companies other than the companies claiming exemption under section 11.
ITR 7: For persons that including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only.
Kapil Rana, Chairman, and Founder, HostBooks Limited, says, “There are few major changes incorporated in the Income Tax Return forms released by the Government yesterday. Also, information like deposit more than Rs 1 crore in the account, foreign travel spending more than Rs 2 lakh, expenses in electricity more than Rs 1 lakh and a statement for amount investment/ deposited/ payment made during the period from 01.04.2020 to 30.06.2020 are to be provided in the return form.”
New Schedule “Schedule DA” has been added in relation to the above investment deposited/payment made during the above-specified periods. 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%. It is clear, thus, that the government is putting all efforts “to curb the tax leakages and also allow law-abiding taxpayers to take the benefit of the spent. This also shows the government’s intention to make the process simple and smoother,” adds Rana.