On 29.05.2020, the Central Board of Direct Taxes (CBDT) has notified the Income Tax Return (ITR) forms and manner of furnishing Return of Income for Assessment Year (A.Y.) 2020-21 i.e. FInancial year (F.Y.) 2019-20.

In exercise of the powers conferred by Section 139 read with Section 295 of the Income-tax Act, 1961, the CBDT amended the Income-tax Rules, 1962. The amendment known as Income-tax (12th Amendment) Rules, 2020 has been notified vide Notification No. 31/2020 Dated 29.05.2020.

ITR Forms applicability for A.Y. 2020-21 / F.Y 2019-20

Form ITR-1 (Sahaj): This form is for Individuals being a Resident (other than not ordinarily resident) having total income upto Rs. 50 lakhs, having Income from Salaries, one house property, other sources (Interest, etc.), and agricultural income up to Rs. 5,000. This form is not for an individual who-

a) has assets (including financial interest in an entity) located outside India; or

b) has signing authority in any account located outside India; or

c) has income from any source outside India; or

d) is a Director in any company; or

e) has held any unlisted equity share at any time during the previous year; or

f) owns more than one house property, the income of which is chargeable under the head “Income from House Property”; or

g) has income under the head “Income from Other Sources” in the nature of:-

(i) winnings from lottery;

(ii) activity of owning and maintaining race horses;

(iii) income taxable at special rates under Section 115BBDA or Section 115BBE; or

h) has any brought forward loss or loss to be carried forward under any head of income; or

i) is assessable for the whole or any part of the income on which tax has been deducted at source in the hands of a person other than the assessee.

Form ITR-2: This form is for Individuals and HUFs not having income from profits and gains of business or profession.

Form ITR-3: This form is for Individuals and HUFs having income from profits and gains of business or profession.

Form ITR-4 (Sugam): This form is for individuals, HUFs and Firms (other than LLP) being a resident having total income upto Rs.50 lakhs and having income from business and profession which is computed under Section 44AD, 44ADA or 44AE of the Income Tax Act, 1961. This form is not for an individual who-

a) has assets (including financial interest in an entity) located outside India; or

b) has signing authority in any account located outside India; or

c) has income from any source outside India; or

d) is a Director in any company; or

e) has held any unlisted equity share at any time during the previous year; or

f) owns more than one house property, the income of which is chargeable under the head “Income from House Property”; or

g) has income under the head “Income from Other Sources” in the nature of:-

(i) winnings from lottery;

(ii) activity of owning and maintaining race horses;

(iii) income taxable at special rates under Section115BBDA or Section 115BBE; or

h) has any brought forward loss or loss to be carried forward under any head of income; or

i) is assessable for the whole or any part of the income on which tax has been deducted at source in the hands of a person other than the assessee.

Form ITR-5: This form is for persons Other than an Individual, HUF, Company and person filing Form ITR-7.

Form ITR-6: This form is for Companies other than companies claiming exemption under Section 11 of the Income Tax Act, 1961.

Form ITR-7: This form is for persons including Companies required to furnish return under Sections 139(4A) or 139(4B) or 139(4C) or 139(4D) of the Income Tax Act, 1961 only.

Major changes in the ITR Forms for A.Y. 2020-21  / F.Y. 2019-20

1. Interchangeability of PAN and Aadhaar Number has been introduced in the new ITR Forms. Now, while filing ITR-1, ITR-2, ITR-3 or ITR-4, an Individual assessee having Aadhaar Number but not having a PAN can file his/her Return of Income by simply quoting his/her Aadhaar Number.

Similarly, in case of let-out property, instead of PAN and TAN details of the Tenant, Aadhaar Number of the Tenant can be provided if the tenant is an Individual. In case the Return of Income is being filed by a representative assessee, now there is an option to give either the PAN or the Aadhaar Number of such person. While furnishing audit information in ITR-3, ITR-5 and ITR-6, there is an option to give either the PAN or the Aadhaar Number of the Auditor. And, also while providing information of Key Persons in ITR-6 PAN and Aadhaar Number can be used interchangeably.

2. While filing ITR-1, ITR-2, ITR-3 or ITR-4, under Nature of Employment, Government employees have been bifurcated as Central Govt. and State Govt. employees. Also, a new option “NA” has been added to the list. This option can be used by individuals claiming Family Pension, etc.

3. In case the assessee is filing Return of Income under Seventh provisio to Section 139(1) and was otherwise not required to file Return of Income, following additional details have to be furnished while filing ITR-1, ITR-2, ITR-3 or ITR-4:

a) details of deposit exceeding Rs 1 crore in one or more current account(s).

b) details of foreign travel expenditure exceeding Rs 2 lakhs (for self or for any other person).

c) details of electricity expenses exceeding Rs 1 lakh.

4. “Schedule DI- Details of Investment” has been incorporated in all the ITR Forms, whereby a statement has to be filed for any investment/ deposit/ payments made during the period 01.04.2020 to 30.06.2020 for the purpose of claiming any deduction under Chapter VIA. This schedule varies according to requirements of the related ITR.

Schedule DI

5. While filing Form ITR-3, ITR-5 or ITR-6, certain additional details have been asked under Audit Information. These are as follows:

I. Whether assessee is declaring income only under Section 44AE/44B/44BB/44AD/44ADA/44BBA/44BBB?

II. If No, whether during the year Total sales/turnover/gross receipts of business exceeds Rs. 1 crore but does not exceed Rs. 5 crores?

If the answer to point II above is Yes, whether aggregate of all amounts received including amount received for sales, turnover or gross receipts or on capital account like capital contributions, loans etc. during the previous year, in cash, does not exceed five per cent of said amount?

d) Also, if the answer to point II above is Yes, whether aggregate of all payments made including amount incurred for expenditure or on capital account such as asset acquisition, repayment of loans etc., in cash, during the previous year does not exceed five per cent of the said payment?

6. In ITR-4, under “Schedule BP”, while calculating the Gross Turnover or Gross Receipts under Section 44AD, amounts received through prescribed electronic modes has been incorporated in addition to amounts received through account payee cheque, account payee bank draft and bank electronic clearing system.

7. In ITR-4, while calculating presumptive income from goods carriages under Section 44AE, the celling of maximum 10 rows has been removed.

Also Read:-

S. No. Particulars
1 A.Y. 2020-21 ITR Forms: Eligibility Criteria & Changes
2 All about filing of ITR-1 (Sahaj) for AY 2020-21
3 All about filing of ITR-2 for AY 2020-21
4 All about filing of ITR-3 for A.Y. 2020-21
5 All about filing of ITR-4 (Sugam) for A.Y. 2020-21
6 All about filing of ITR-5 for A.Y. 2020-21
7 All about filing of ITR-6 for A.Y. 2020-21
8 All about filing of ITR-7 for A.Y. 2020-21

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12 Comments

  1. Shiva says:

    I have invested in mutual funds and also made some withdrawals. I haven’t earned any profit. I haven’t made investment in ELSS. Coold you please let me know which form I should choose.

  2. Vishnu says:

    I have a long term capital gain of Rs.60000/- in addition to pension/interest income of Rs.400000. Since long term capital gain of less than Rs.1 lakh is not taxable, which form I have to use.

  3. Govind Prasad Garg says:

    What is purpose of calling informations in ITR 3.ITR 5 and ITR 6 in Part A-Gen in m m (a2) (a2II) (a2iii) relating to turnover between 1 Crores to 5 Crore. Such information not called in ITR -4

    1. cabubna@gmail.com says:

      No specific purpose has been defined by the IT Dept. Such information could be for their internal data processing and analysis.

  4. Govind Prasad Garg says:

    Pl. let me know purpose of Bifurcation of information under part A -Gen m (a2) (a2i) (a2ii) (a2III) asking in ITR 3, 5, 6 for turnover exceeding 1 crore and up to 5 Crore. No such information is called in ITR -4

    1. cabubna@gmail.com says:

      ITR-4 is for filing of presumptive business income wherein Audit is not required. Hence, such details have not been asked for by the IT Dept. in ITR-4 as compared to ITR-3, ITR-5 and ITR-6 wherein Audit Information may be relevant.

  5. Lals says:

    It does not mention anything about capital gains. Can an individual having salary, one house property and capital gains use ITR 1?

    1. cabubna@gmail.com says:

      In case of Income under the head Capital Gains, you can file Return of Income through ITR-2 or ITR-3 based on the eligibility for each form.

  6. Utkarsha Aggarwal says:

    Sir, why have they asked for information you mentioned in point no. 5 of major changes in ITR forms. It relates to amendment in Section 44AB of Ay 21-22??

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