Key additions in newly notified income tax return form – 1 (ITR-1) – now available for E-filing At income tax portal

Recently, the government (CBDT) notified the revised Income Tax Return Forms (ITR) for the financial year 2019-20 (A/Y 2020-21).

Today i.e. on 2nd of June, 2020, just after 2 days of the said notification, the department has made the Income Tax Return Preparation Software (also known as the income tax return utility) for ITR-1 available on its e-Filing portal for filing the income tax returns. (https://www.incometaxindiaefiling.gov.in/downloads/incomeTaxReturnUtilities).

income tax returns Image 1Starting today, all the individual taxpayers can file their ITR-1 pertaining to financial year 2019-20.

We have thoroughly analyzed ITR-1 and in this article we are highlighting the key additions in the ITR-1 form that is now made available for e-Filing.

KEY ADDITION NO. 1:

Disclosure with regard to cash deposits, expenditure on foreign travel and expenditure on consumption of electricity:

The Final Budget, 2019 added a seventh proviso in section 139(1) w.e.f. 1st April, 2020 which states as under:

A person who is not required to furnish a return under 139(1) and who during the previous year (i.e. F/Y 2019-20) —

(i) has deposited an amount or aggregate of the amounts exceeding Rs. 1 crores in one or more current accounts maintained with a banking company or a co-operative bank; or

(ii) has incurred expenditure of an amount or aggregate of the amounts exceeding Rs. 2 lakh for himself or any other person for travel to a foreign country; or

(iii) has incurred expenditure of an amount or aggregate of the amounts exceeding Rs. 1 lakh towards consumption of electricity; or

(iv)  fulfils such other conditions as may be prescribed,

shall furnish a return of his income on or before the due date in such form and verified in such manner and setting forth such other particulars, as may be prescribed.

To give effect to the above, a new section in ITR-1 has been added as displayed below:

income tax returns Image 2If you are required to file your ITR-1 because of the seventh proviso mentioned above, then you will have to select YES and fill the amount in the relevant section applicable to you.

IMP. NOTE: If you are required to file your ITR under Section 139(1) (i.e. except under the seventh proviso) then no information is required in this section. You can simply select NO and move ahead.

KEY ADDITION NO. 2:

SCHEDULE DI

Keeping in view the challenges faced by taxpayers in meeting the compliance requirements under lockdown conditions, the Finance Minister had announced several relief measures relating to statutory and regulatory compliance matters across all the sectors in view of COVID-19 outbreak on 24.03.2020 vide a press release. To give effect to the announcements so made, the government brought an Ordinance (named “The Taxation And Other Laws (Relaxation Of Certain Provisions) Ordinance, 2020”) on 31.03.2020 which provided for extension of various time limits under the Taxation and other Acts.

The Ordinance made an EXTENSION in the date for making investment/payment/deposit for claiming deduction under Chapter VIA-B: The date for making investment/payment/deposit for claiming deduction under Chapter VIA-B which includes Section 80C (LIC, PPF, NSC, etc.), 80D (Mediclaim, etc.), 80G (Donations), etc. was extended to 30th June, 2020 from the earlier 31st March, 2020.

The new return form has a special schedule named DI where the taxpayers, in order to avail deductions under chapter VIA-B for the financial year 2019-20, have to report the investments/payments/deposits so made from the period starting 1st April, 2020 to 30th June, 2020.

From the total eligible amount of investments/payments/deposits so made for the financial year 2019-20, the taxpayers shall have to separately disclose investments/deposits/payments made during the extended period (01.04.20 to 30.06.20) in order to claim the deduction for the same for this financial year under chapter VIA-B i.e. under section 80C (PPF, Life insurance premium, 5 year FD etc.); 80D (Mediclaim, medical expenses, preventive health check-up, etc.); 80G (Donations), etc.

The snapshot of the schedule is displayed below:

income tax returns Image 3IMP. NOTE: If you have made the relevant investments/deposits/payments on or before 31st March, 2020 for claiming deductions under chapter VIA-B for the financial year 2019-20 and you have also made deposits/investments/payments during the period starting from 1st April, 2020 to 30th June, 2020 for the financial year 2020-21, then no disclosure is required to be made in this schedule.

KEY ADDITION NO. 3:

SCHEDULE 80D

A new schedule 80D has been added in the ITR-1 this time for claiming deduction under Section 80D of the Income Tax Act i.e. for medical insurance premium, expenditure, preventive health check-up etc.

The bifurcated amounts under each sub head shall required to be reported this time.

income tax returns Image 4CONCLUSION:

All other sections in the ITR-1 are more or less the same as were before.

The extended last date for filing the ITR-1 for the financial year 2019-20 is 30th November, 2020

We advise all the taxpayers to file their respective ITRs only after 30th June, 2020 (being the extended last date for making investments/payments/deposits in order to claim deductions under chapter VIA-B i.e. 80C, 80D, 80G, etc.) so that they do not miss out on claiming any deduction in a hurry to file for their ITRs.

File your income tax returns in time to avoid last minute rush, late fees, interest, penalties and other statutory fines.

For any queries relating to the information provided in this article, kindly drop in the comments below or e-mail on connect@ujlegal.com

Thanks for reading and appreciating.      

Author Bio

Qualification: CA in Practice
Company: U J & CO.
Location: Delhi NCR, New Delhi, IN
Member Since: 29 Apr 2020 | Total Posts: 13
A first class commerce graduate from Delhi University, a Company Secretary and a practicing Chartered Accountant. Also a Co-Founder at UJ LEGAL LLP and Content Writer at TaxGuru. View Full Profile

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9 Comments

  1. Savita Sangangoudar says:

    Thank you for d information sir. I am a salaried person with 7lakh annual income for d year 2019-20. Can I file returns on my own? If yes which form should I fill?

    1. CA (CS) Ujjwal Jindal says:

      Hi. Thanks for reading.
      Yes you can file your ITR yourself.
      Depending upon the various income heads under which you have your income, the ITR form can be suggested.
      If you have income just from salary, you can file ITR-1.
      However, if you are filing ITR for the first time, its better to consult a CA/other professional so that you don’t commit any mistake.
      You may contact me at connect@ujlegal.com for assistance.
      Many thanks!

  2. Anuj Bansal says:

    Hello,

    I have a short term capital gain and long term capital gain from Mutual Funds. Can I fill this Form 1? Total gain is below Rs. 5000.

    Please advise me.

    1. CA (CS) Ujjwal Jindal says:

      Hi Anuj Bansal! I trust you are doing well.
      You can only file ITR-1 if you have a Total Income upto Rs.50 lakhs, Income from Salaries, One House Property, Other Sources (Interest etc.), and Agricultural Income upto Rs.5,000.
      In case of income under the head Capital Gains you cannot file ITR-1.
      For further queries you can e-mail us at connect@ujlegal.com.

  3. S Govindaswamy says:

    For Senior citizens having taxable income exceeding exempted value filing up Form 15 H has become very difficult particularly because dividend income from Mutual funds has become taxable. It is quite likely that there will be no dividend income at all this year from Mutual funds. Based on this assumption can they submit 15 H Forms

    1. CA (CS) Ujjwal Jindal says:

      Form 15H is always filed on the basis of assumption that your income tax payable will be NIL.
      If you anticipate that the tax payable on your total income for the financial year will be NIL, you can file Form 15H.
      For dividends TDS shall be deducted @10% under Section 194 only if the payments exceed Rs. 5,000 during the financial year (added as per the Finance Act, 2020).
      In case, at the end of financial year you assess that there is some tax payable, you can deposit the same disclosing the necessary income while filing your income tax return for that financial year.
      In order to avoid interest and penalty for short payment of taxes, if your tax payment is Rs. 10,000 or above at the end of financial year i.e. you have wrongly assessed your total income before and submitted Form 15H, you can pay the taxes as advance tax on or before 15th March, 2020!

      For any further queries you can e-mail at connect@ujlegal.com

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