The New Income Tax return forms for AY 2020-21 have seen some important changes per the notification from the Finance Ministry in the last week of May.
The Finance Ministry has now issued ITR 1 (Sahaj), ITR 2, ITR 3, ITR 4 (Sugam), ITR 5, ITR 6, ITR 7, and ITR V forms.
The new income tax return forms by CBDT necessitate a separate table to provide details of tax-saving investments made in Q1 2020 to avail of the benefits in FY 2019-20. Taxpayers must assess their tax liability for FY 2019-20 and ensure they make the maximum use of their Section 80C benefits.
It is now mandatory to provide information in case of high-value transactions like deposits in a current account worth more than Rs. 1 crore, electricity bill payments of more than Rs. 1 lakh, and foreign travel spending of Rs. 2 lakh or more. The new income tax return forms have been notified for individuals, professionals, and corporate assessee, providing an extended period up to June 30, 2020, to avail of investment benefits in tax-saving instruments.
Income Tax Return Forms & who can file them?
ITR 1: For salaried individuals earning up to Rs. 50 lakhs annually
ITR 2: For individuals & HUFs not having income from business/profession
ITR 3 For individuals and HUFs having income from business/profession
ITR 4: For individuals, HUFs & firms (other than LLP) with total income up to Rs. 50 lakh, and having income from business & profession (computed under Sec 44AD, 44ADA, or 44AE). Individuals who are withering investors with unlisted equity shares/directors in a company are not allowed to file using this form
ITR 5: For those other than individuals, HUFs, companies and those filing ITR 7 form
ITR 6: For companies other than those claiming exemption under Sec 11
ITR 7: for persons including companies required to submit returns under Sec 139(4A) / 139(4B) / 139(4C) / 139(4D) only
The ITR 1 form is simplified with detailed information on salary income, house property income no longer sought.
In the case of taxable income as dividends from domestic companies, the taxpayer is ineligible to file ITR-1 form. Taxpayers with joint ownership of house property are also ineligible to file ITR-1 & ITR-4 forms.
Deductions under Sec 80C (LIC, PPF, NSC, etc), 80D (medical-claim), and 80G (donations) will now be allowed for spending till June 30. The dates for making an investment, construction, or purchase for claiming rollover benefit in respect of capital gains under sections 54 to section 54GB have also been extended to June 30.
The new ITR forms seek details of all these investments and payments made between April and June for claiming a tax deduction.