Key Changes in Filing of ITR forms

Considering the COVID-19 pandemic, various relaxations have been provided under the statutory compliances and one of them is with respect to Filing of Income Tax Returns (ITR). During the current year, while filing the ITR one has to keep in mind various relaxations provided by the government as a relief measure. Following is the summarised table enumerating the key changes to be kept in mind while filing of ITR forms.

Extension in various dates

Sr No Head Change Description
1 Extension in date of filing of return for FY 2018-19 (AY 2019-20) The due date for filing of return of FY 2018-19 is extended from March 31, 2020 to June 30, 2020. But the penalty as per law of Rs. 1,000/- and Rs. 10,000/- has to be paid.
2 Extension in date of filing of return for FY 2019-20 (AY 2020-21) The due date for filing of return of FY 2019-20 is extended to November 30, 2020 from July 31, 2020.
3 Extension in date of making investments u/s 80C for FY 2019-20 (AY 2020-21) Assessee whose investment under PPF, NSC or any other tax saving scheme was not done up to March 31, 2020 then that can be made up to June 30, 2020. Maximum benefit of Rs. 1,50,000/- can be taken.
4 Extension in date of filing of Tax Audit Report for FY 2019-20 (AY 2020-21) The due date for filing of tax audit report of FY 2019-20 is extended from September 30, 2020 to October 31, 2020. Also, the due date of filing of such returns is extended to November 30, 2020.
B)    Notification No. 31/2020 dated 29.05.2020

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. For incorporating changes to curb tax evasion certain amendments are carried out in Finance Act, 2019 accordingly changes in ITR forms are being made.

Sr No Head Change Description
1 Providing additional information relating to expenditure and deposit of cash Taxpayers are now required to provide following information for Deposit of Cash in current accounts, Expenditure on foreign travel and expenditure on electricity expense in ITR -1, ITR -2, ITR -3 and ITR -4.

a.    Have you deposited amount or aggregate of amounts exceeding Rs. 1 Crore in one or more current account during the previous year? (Yes/No)

b.    Have you incurred expenditure of an amount or aggregate of amount exceeding Rs. 2 lakhs for travel to a foreign country for yourself or for any other person? (Yes/ No)

c.   Have you incurred expenditure of amount or aggregate of amount exceeding Rs. 1 lakh on consumption of electricity during the previous year? (Yes/No)

2 Changes in nature of employment under government employees In form ITR -1, ITR -2, ITR -3 and ITR -4 under nature of employment, government employees have been bifurcated as central govt., state govt., public sector undertaking, pensioners, others and additional New “ N.A.” field is added which can be used by person who are claiming family pensions.
3 Addition of Schedule DI- Details of Investments “Schedule DI – Details” of investment has been incorporated in all ITR forms, to include relaxation given during the period 1.4.2020 to 30.06.2020 for the purpose of claiming any deduction under Chapter VI-A, deposit and payment for claiming deduction u/s 54 to 54GB.
4 Person earning Dividend Income can’t file ITR – 1 form If any person is having taxable income as dividend from domestic companies, then the person is not eligible to file ITR -1 form. The person or assessee has to file return other than ITR -1.
5 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.
6 Changes in ITR – 4 with respect to Section 44AD In ITR -4 under section 44AD, one new clause added as the electronic mode in addition to electronic clearance and reduced the presumptive income from 8% to 6%.
7 Changes in ITR – 6 for selecting concessional tax rate, if any Drop down to be provided in e-filling utility in ITR 6 for domestic companies if the assessee has opted for taxation under concessional tax rate under section 115BA/115BAA/115BAB.

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Qualification: CA in Practice
Company: Parikh & Associates
Location: AHMEDABAD, Gujarat, IN
Member Since: 06 Jul 2019 | Total Posts: 8
Vedant K. Parikh is Partner at Parikh & Associates, Chartered Accountants based at Ahmedabad. Vedant is an active member of the Institute of Chartered Accountants of India and is committee member at the Ahmedabad Branch of ICAI. Vedant is serving as Independent Director in a Co-Operative B View Full Profile

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2 Comments

  1. vswami says:

    ADMN / WRITER

    “Even As of now, however, in the new form so far available , for auto tax calculation, the newly reduced slab rates applicable to a SSC do not seem to have been factored in -open to correction if wrong in saying so.”

    Will you please check and confirm that my understanding is correct, and also complete in ALL respects; in that, is there also any other aspect not suitably factored in, in the new Form- not only FORM No. 1, but also in any of the other prescribed FORMS – say, in FORM N0. 2.

  2. vswami says:

    WRT
    “2 Extension in date of filing of return for FY 2019-20 (AY 2020-21)
    The due date for filing of return of FY 2019-20 is extended to November 30, 2020 from July 31, 2020.”

    Even so, there could be a taxpayer, especially a person of age over 79 (now upgraded to the status of a ‘Super Senior Citizen- ‘SSC’), – who for own reasons (including the special reason for which the reported relaxations have been obligingly made) , and by way of prudence and abundant caution,- wants to e-file tax return any time earlier than the normal due date of july 31, 2020, after payment of SA Tax.
    Even As of now, however, in the new form so far available , for auto tax calculation, the newly reduced slab rates applicable to a SSC do not seem to have been factored in -open to correction if wrong in saying so.
    If not so, this is a matter which should be taken up with the CBDT by one and all concerned for having plugged in the suitable correctives in the FORM immediately; so as to avoid otherwise possible but unintended adverse consequences .

    courtesy
    (for THE COMMON GOOD )

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