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.

tax returns magnify glass sign concept illustration design graphic

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!!

Also Read

Download Form Sahaj (ITR-1) for A.Y. 2020-21

Download Form Sugam (ITR-4) for A.Y. 2020-21

Rule 12 of Income Tax Rules wef 01.04.2020 | ITR | AY 2020-21

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  1. ankit3210 says:

    Due date of all income-tax returns for FY 2019-20 extended from 31st July, 2020 & 31st
    October, 2020 to 30th November, 2020 and Tax
    audits from 30th September, 2020 to 31st
    October, 2020.

  2. kcshekhar says:

    When rent is received from redeveloper since society building is under redevelopment, where it should be shown under Self Occupied Let Out Deemed Let Out

    1. ankit3210 says:

      In my opinion Sir, this receipt should be treated as a Capital receipt and thus would not be liable to be offered to tax.
      The same was also held in by the Income Tax Tribunal Mumbai in the case of Jitendra Kumar Soneja vs. ITO, [2016]161ITD269(Mum).
      Also a similar decision was delivered in the case of Kushal K Bangia vs. ITO [2012] 50 SOT 1 ( Mum ) wherein a similar issue was raised and decided in favour of the assessee.
      And thus on relying on these decisions being declared by the Tax authorities, you may not offer the rental income to tax as it is a mere compensation provided to you.


    The Government would do well to ask all citizens to submit date-wise, head-wise income (in cash or by bank transactions separately) and tally it with all statements including an attestation by a gazetted officer about the real cash balance even if it is zero. Then NO ONE CAN ESCAPE TAX NET

    1. ankit3210 says:

      Dear Sir,

      I wish to inform you that in case of point A only sub-point 2 is applicable in case of ITR-4. The very reason I had to club both the non-applicabilities in the article was the length of the article in case I would have shown both the applicabilities separately.

      However, in respect of your concern raised, I wish to clarify that the other 2 sub-points in Point A are not applicable for ITR-4.

      Considering the clarity issue raised by you Sir, I have mailed Taxguru Team with a revised article having a few changes in the content built-up and also added a few more points to my article so as to make it a little more clear and value additive. Once the same gets updated in the article, probably today itself, you can re-read it for your better understanding.

    2. ankit3210 says:

      Dear Ajay Sir and other Readers,
      The article has been updated by Taxguru team basis the revised content structue mailed to them and thus now the non-applicability provisions of ITR-1(3 in nos.) and ITR-4(1 in no.) have been shown separately for your easy reading and undertaking.

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