Article explains list of IT Forms notified for FY 2019-20, Applicability of ITR-1 Sahaj for FY 2019-20, Illustrative list of assessees who are not allowed to submit Form ITR-1 Sahaj for FY 2019-20, Significant changes in ITR-1 (SAHAJ) for FY 2019-20 and Summary of stringent disclosure requirements in ITR-1 (SAHAJ) for FY 2019-20.
The Central Board of Direct Taxes (CBDT) has vide Notification No. 31/2020 dated May 29, 2020 notified the New ITR Forms (ITR1 to ITR7) for the FY 2019-20 i.e. AY 2020-21 by amending Rule 12 of Income Tax Rules substituting the old ITR forms.
|1.||ITR-1 (Sahaj)||For individuals being a resident (other than not ordinarily resident) having total income upto Rs.50 lakh, having Income from Salaries, one house property, other sources (Interest etc.), and agricultural income upto Rs. 5 thousand [Not for an individual who is either Director in a company or has invested in unlisted equity shares].|
|2.||ITR-2||For Individuals and HUFs not having income from profits and gains of business or profession|
|3.||ITR-3||For Individuals and HUFs having income from profits and gains of business or profession|
|4.||ITR-4 (Sugam)||For Individuals, HUFs and Firms (other than LLP) being a resident having total income upto Rs.50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE [Not for an individual who is either Director in a company or has invested in unlisted equity shares]|
|5.||ITR-5||For persons other than (i) individual, (ii)HUF, (iii) company and (iv) Person filing Form ITR-7.|
|6.||ITR-6||For Companies other than Companies claiming exemption under section 11.|
|7.||ITR-7||For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only.|
Subsequently, CBDT provided the excel utility of Form ITR-1 Sahaj, on the web portal which begins the e-filing season of Income tax returns for the AY 2020-21. Excel utilities for the other ITR forms are expected to be uploaded on income tax filing portal soon.
Form ITR-1 SAHAJ, as the name suggest, is an easy way of income tax compliance by individuals and hence it is framed in a manner which is easy, quick for a taxpayer to fulfil his obligations under Income Tax Act.
ITR-1 form is applicable only for resident individuals which falls under any of the below sources of income:
1. Income from Salary/Pension upto Rs. 50 Lacs
2. Income from One House Property (excluding cases where loss is brought forward from previous years or carried forward to subsequent years)
3. Income from Other Sources (excluding winning from Lottery and Income from Race Horses which are chargeable to tax at special rates)
4. Agricultural Income upto Rs. 5,000.
The above scope of applicability of Form ITR-1 Sahaj is very narrow. Here is an illustrative list of assessees who are not allowed to submit Form ITR-1 Sahaj
1. Resident but not ordinary resident
3. HUF, AOP, BOI, Firms, Companies, Person filing Form ITR-7
4. Individual who is a director in a company
5. Individual having investment in unlisted equity shares
6. Salary income over Rs. 50 Lacs
7. More than one house property
8. Capital gains/losses
9. Income from profits and gains of business or profession.
10. Income from other sources chargeable to tax at special rates
11. Unexplained Income
12. Agricultural Income exceeding Rs. 5,000.
13. Assessee has any brought forward losses or losses to be carried forward under any head of income including house property loss.
Some of the significant changes in ITR-1 when compared to previous year can be classified in two parts, one which are stipulated by law on account of changes in income tax act, over time and second, other procedural change which are planned for effective tax compliance.
1. Changes which are incorporated as part of change of Income Tax Act
|Reference within Return Form||Changes Introduced|
|Part A : General Information||Mandatory requirement to file ITR on meeting certain criteria as per seventh proviso to section 139(1) as introduced in Finance (No. 2) Act 2019 w.e.f. 01.04.2020
1. Whether deposited any amount or aggregate amount exceeding INR 1 crore in one or more current account during previous year.
2. Whether incurred any expenditure of an amount or aggregate of amount exceeding INR 2 lakhs for travel to foreign country for yourself or any other person.
3. Whether incurred any expenditure of an amount or aggregate of amount exceeding INR 1 lakh on consumption of electricity during the previous year.
In all these three cases, assessee is required to disclose the total amount of expenditure incurred.
|Schedule -DI||New schedule introduced for details of Investment made between 01.04.2020 to 30.06.2020
This is in line with the time extension granted by “Taxation and Other Laws (Relaxation of certain provisions) Ordinance, 2020” for the purpose of claiming deduction for AY 2020-21 by way of investments, etc under chapter VI-A till 30.06.2020.
|Deductions||New deductions as introduced in Finance (No. 2) Act 2019 w.e.f. 01.04.2020
1. 80EEA-Deduction in respect of interest on loan taken for certain house property
2. 80EEB-Deduction in respect of purchase of electric vehicle
2. Other procedural changes
|Reference within Return Form||Changes Introduced|
|General Information||Nature of employment – bifurcation being provided for government employee into state government and central government employee.|
|General Information||If return is to be filed in response to notice issued, either unique number or Document identification Number (DIN) can be provided.|
|TDS Schedule||Aadhar Number of tenant to be provided.|
|Deductions||Separate schedule for computation of deduction under 80D.|
|Bank Accounts||Multiple bank accounts are allowed to be selected for getting the refund credit. In case multiple accounts are selected for refund credit, then refund will be credited to one of the bank account decided by CPC after processing the return.|
It is important to mention here that the CBDT has rolled back the earlier issued ITR-1 (SAHAJ) and ITR-4 (SUGAM) [vide Notification No. 1/2020 dated January 3, 2020].
Here is a quick summary of stringent disclosure requirements in ITR, which were introduced by way of this notification which stands suspended now.
|Reference within Return Form||Changes not effective|
|Salary/Pension||The details of all employer for reporting salary income has been removed.|
|Details of tenant||The details of tenant in case of let out, Name and PAN, or Aadhaar of tenant for reporting rental income as notified by the Notification 1/2020 has been removed.|
|TDS Schedule||The Deduction u/s. 57(iv) [in case of interest received u/s. 56(2)(viii)] in the section ‘Income from Other Sources’ as notified by the Notification 1/2020 has been removed.|
|Deductions||The details of passport Number has been removed.|
Even after the extension of income tax return filing dates due to covid-19 lockdown, the gesture of issuing the new forms by CBDT, is highly commendable. This will certainly help the taxpayers to analyze and gather all the requisite information, and file the Income-tax return by the due dates. Let the season for return filing AY 2020-2021 begin!
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