Analysis of CBDT Notification 01/2020
Revised format of ITR-1 and ITR-4 for FY 19-20 notified!!
ITR Forms which usually are issued somewhere around in the first week of April of the relevant Assessment Year, this time have been issued on 3rd January itself!! [Only ITR-1(Sahaj) & ITR-4(Sugam)]
The very reason for the same is the following major changes incorporated vide Notification No 01/2020 dated 03.01.2020 by the CBDT –
A. The following assessees cannot opt for ITR-1 if during the FY 2019-20:
1. Payment towards:
a. Electricity expenses was in excess of Rs 100000 or;
b. Foreign Travel expenses for himself or any other person was in excess of Rs 200000.
2. Joint-ownership of House property owned.
3. Deposit of more than Rs 1 Crore in one or more Current accounts maintained with a Banking company or a Co-operative bank.
B. Those who own a House property in Joint-ownership with two or more persons will not be eligible to file ITR-4, which is for Presumptive taxation assessees.
C. Additionally, in case of ITR-4, a major change in Financial details is that the figures of Cash and Bank are to be given in detailed (i.e. Opening Balance + Receipts during the year – Payments during the year = Closing Balance) as against the existing disclosure of only Closing balance as on the end of the financial year.
D. However, now there is no requirement to give the other financial details of Unsecured Loans, Sundry Debtors and Creditors, Closing Stock which were required to be provided earlier in ITR-4. Also, an additional field to enter Passport number has been added, if the assessee holds the same.
In all, this New Year gift by the Revenue Department has come with some additional requirements for the assessees and increasing the extent of Taxnet and details sought for.
Another thing to highlight is that the assessees under the salaried class having Joint ownership of the House property can no longer claim ITR-1 benefit. In a situation when this class of assesses are pretty much stressed up due to no major tax relief for them, this notification is surely going to result in some additional compliance burden on them.
However, the very reason these forms have been notified 3 months prior to end of FY 19-20 is to give the assessees required time to comply and plan for their ITR Filing and tax payments in the upcoming ITR Filing season!!