The CBDT has notified the Income Tax Returns (ITR Forms i..e. ITR 1 to ITR 7) for the FY 2019-2020 (AY 2020-2021)  vide Notification No. 31/2020-Income Tax Dated- 29/05/2020, which became effective from 30th May, 2020.

Glad to see this notified a day before than what the department committed.

Six key changes in newly notified income tax return forms for the F/Y 2019-2020 (A/Y 2020-2021)

1. Joint House Ownership:

Individual taxpayers who are joint owners of house property can now file their annual income tax return using the simple ITR-1 (Sahaj) or ITR-4 (Sugam) forms. They shall now not be required to file ITR-2 or ITR-3 respectively to report their incomes if they are joint owners in a house property.

[This has been done to nullify the addition made by The Income Tax (First Amendment) Rules, 2020 w.e.f. 01.04.2020 as it was causing unusual hardship to the individual taxpayers]

income tax return forms for the FY 2019-2020

2. Passport Number:

One is no longer required to mandatorily disclose his/her Passport Number in ITR-1 (Sahaj) or ITR-4 (Sugam).

[This requirement has been nullified which was introduced by the earlier notified Income Tax Return Forms on 3rd January, 2020 which were then rolled back as they were causing unusual hardship to the taxpayers]

3. Cash Deposit in Current Account* :

It has been made compulsory, in all ITR forms, for a person who is covered by the seventh proviso to Section 139(1) i.e. not otherwise required to file the income tax returns, to declare the amount of cash deposited in one or more current accounts with a bank, if such amount or aggregate of such amount exceeds Rs. 1 crore during the F/Y 2019-20.

[This is done as per the Seventh Proviso to Section 139(1) added by the Finance (No. 2) Act, 2020 – Final Budget, 2019 to deepen and widen the tax net]

4. Expenditure on Foreign Travel* :

If you have incurred expenditure of an amount or aggregate of amount exceeding Rs. 2 lakh on foreign travel during the F/Y 2019-20 and you are a person who is covered by the seventh proviso to Section 139(1) i.e. not otherwise required to file the income tax returns, you are compulsory required to disclose such actual amount you have spent.

[This is done as per the Seventh Proviso to Section 139(1) added by the Finance (No. 2) Act, 2020 – Final Budget, 2019 to deepen and widen the tax net]

5. Expenditure on Consumption of Electricity* :

If you have incurred expenditure of amount or aggregate of amount exceeding Rs. 1 lakh on consumption of electricity during the F/Y 2019-20 and for a person who is covered by the seventh proviso to Section 139(1) i.e. not otherwise required to file the income tax returns, you will have to disclose the actual amount so paid.

[This is done as per the Seventh Proviso to Section 139(1) added by the Finance (No. 2) Act, 2020 – Final Budget, 2019 to deepen and widen the tax net]

* [Very Important Note: The above information is to be filled in the ITR form only in the case of a person is not required to furnish a return of income under section 139(1) but is filing return of income due to fulfilling one or more conditions mentioned in the seventh proviso to section 139(1). Thus, it is pertinent to note, that if you are a taxpayer, who has income exceeding the maximum amount not chargeable to income tax i.e. total income greater than Rs. 2,50,000 or Rs. 3,00,000 or Rs. 5,00,000 or is required to file Income Tax Returns under Section 139(1) except for the seventh proviso to Section 139(1) then no such disclosures of the amount so deposited or spent shall be required in your income tax returns for the F/Y 2019-2020]

6. Investment/Payment/Deposit details for claiming Deductions:

The details of all the investment/payments/deposits made, qualifying for deduction under chapter VI-A (Part B) i.e. under section 80C (PPF, Life Insurance, etc.), 80D (Mediclaim), 80G (Donations), etc. of the Income Tax Act, 1961 with the bifurcation of details of investment/payments/deposits so made during the period 1st April, 2020 to 30th June, 2020 shall have to be reported in order to claim the relevant deductions.

[This is done as per The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 which was passed on 31st March, 2020 to provide relief to taxpayers who were not able to make investments/payments/deposits by 31st March, 2020 due to COVID-19 breakout. The date for making such investments/payments/deposits was extended to 30th June, 2020 in order to avail income tax deductions for the F/Y 2019-2020]

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

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Qualification: CA in Practice
Company: U J & CO.
Location: Delhi NCR, New Delhi, IN
Member Since: 29 Apr 2020 | Total Posts: 12
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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2 Comments

  1. DHARMESH GUPTA says:

    well explained sir,
    in most of the articles our CA’s is explained mandatory providing information for all assesses wheras it is for only those assesses falling under the 7th priviso us 139(1)where explainatry note is itself given in pdf form itr4&all other notified forms.

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