New Income Tax Forms for AY 2020-21

Published At: 21-Feb-2020

Year after year we see somewhere or the other there are changes being made to the Income tax return forms. We’ve seen many changes in the budget be it in the form of announcement of new schemes for start-ups, incentivising various industries, reduction in tax rates and many more. In order to capture these amendments in income tax returns, there are many changes in income tax returns also. Let us understand income tax return forms prescribed for FY 2019-2020 (AY 2020-2021)

 

The forms announced by CBDT are ITR 1 SAHAJ & ITR 4 SUGAM. These two forms are much simpler in comparison to others as only a few details are asked for, while filing return. But it is very difficult to fulfil the conditions for eligibility of ITR 1 SAHAJ or ITR 4 SUGAM. Let’s look at the cumulative conditions which are almost exactly same for both the forms.

 

The ITR1 SAHAJ is not applicable to any person who;

i.                    has assets (including financial interest in any entity) located outside India

ii.                  has signing authority in any account located outside India

iii.                has income from any source outside india

iv.               has income to be apportioned in accordance with provisions of section 5A (This is regarding apportionment of income as govenrned by Portuguese Civil Code)

v.                 has claimed deduction under income from other source, other than deduction claimed in relation to family pension

vi.               is a director in any Company

vii.             has held any unlisted equity share at any time during the previous year

viii.           is assessable for the whole or any part of the income on which tax has been deducted at source in the hands of a person other than the assessee

ix.                has claimed any relief of tax under section 90 or 90A or deduction of tax under section 91 (DTAA relief)

x.                  has agricultural income, exceeding five thousand rupees

xi.                has total income, exceeding fifty lakh rupees

xii.              has dividend income above Rs. 10 Lakhs

xiii.            has income of the nature of unexplained cash credit, unexplained money, unexplained investments, unexplained expenditure, etc.,

And newly added conditions are

xiv.           owns a house property in joint ownership with two or more person or

xv.             Is required to furnish return of income if during the year;

i.        has deposited an amount or aggregate of the amounts exceeding Rs. 1 Crore 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

 

The ITR 4 SUGAM is not applicable in case any person;

a.     Covered by condition mentioned above for ITR 1 SAHAJ except condition (v) & (xv).

So the above points are only the eligibility criteria and if you satisfy above conditions you can go with a particular applicable form. Now let’s look at the new reporting requirement in respective form;

ITR 1 SAHAJ

1.     If you have an Indian Passport number then it is required to be reported

2.     Employer details asked in Salary Income (i.e. Name of employer, address of employer, nature of employer, TAN if TDS is deducted)

3.     Property address for income from House property along with Tenant details.  

4.     Amount of rent which could not be realised is to be reported in House Property column.

ITR 4 SUGAM

1.     Need to state amount if during the year a person ;

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

b.     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

c.      has incurred expenditure of an amount or aggregate of the amounts exceeding Rs. 1 Lakh towards consumption of electricity.

2.     Details of Partnership firm and PAN is required to be given if you are a partner in any firm.

3.     Details of partners where Firm is filing return of income with ITR-4 SUGAM. Details in the form of Name along with address, % of share, PAN & Aadhaar of partner, rate of interest on capital, remuneration paid/payable.

4.     No need to give Balance sheet figures now.

5.     Details of Cash & Bank transaction relating to presumptive business is required to be given as detailed below


Sr. No.

Particulars

Cash

Bank(aggregate amount of all bank a/c’s)

1

Opening balance

 

 

2

Receipts during the year

 

 

3

Payments/withdrawal during the year

 

 

4

Closing balance

 

 


6.     Also additional reporting as stated above for ITR1 SAHAJ

 

The Income tax department is fine tuning the number of assessee who are cab file return of income with these new forms which are notified and minimizing hardships of the Taxpayer. Another benefit to the assesse is the early release of the ITR forms which gives them sufficient time to file their returns. By marginalising these forms the department is encouraging salaried individuals and small business owners to file their returns without going through a lot of trouble.

I hope that this blog was helpful and assist you a better and simpler understanding of the 2 Income tax return forms for the AY 2020-21

 

https://www.incometaxindia.gov.in/communications/notification/notification_01_2020.pdf

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