Mumbai, January 6: Each year the Central Board of Direct Taxes (CBDT) notifies the Income Tax Return (ITR) forms sometime in April, but this time it has notified two ITR forms in the first week of January 2020. The CBDT has notified two ITR Forms for AY 2020-21 -- ITR-1 Sahaj and ITR-4 Sugam. Through this two forms, taxpayers get new disclosures and information which they may make declarations while filing their tax return.
Generally, the ITR has be filed each year by July 31 for the Assessment Year, a year ahead of Financial Year. This year too, the last date of filing ITR has been scheduled to July 31, 2020, which may be extended by the Income Tax Department, if required be. Experts opine that this year, the ITR forms for ITR-2 and ITR-3 would be released simultaneously. Aadhaar-PAN Linking Deadline Extended Till March 31, 2020 by Income Tax Department.
Here are five new disclosures that IT department is seeking in these two forms:
1) House Ownership: As per CBDT, individual taxpayers -- joint owners of house property -- cannot file ITR 1 and ITR 4.
2) Passport: A taxpayer needs to disclose the Passport number, both to be furnished in ITR 1-Sahaj and ITR 4-Sugam.
3) Cash Deposit: For taxpayers filing ITR 4-Sugam, declaration of amount deposited as cash in a bank account has been made mandatory, if amount exceeds Rs 1 crore during the FY 19-20.
4) Foreign Travel: Taxpayers spending more than Rs 2 lakh on travelling abroad during the FY 19-20, have to disclose the actual amount spent
5) Electric Consumption: For those whose electricity bills have been more than Rs 1 lakh in aggregate during the FY, have to disclose the actual amount.
What is ITR-1 and who can file it?
Under the ITR-1 form, individuals having Income from Salaries, one house property, interest income etc. up to Rs 50 lakh, they have to fill the details. According to the new ITR-1 for AY 20-21, individuals have been barred who own house property with two or more persons, or have deposited more than Rs 1 crore in a bank account or have spent more than Rs 2 lakh on foreign travels or has paid electricity bills of more than Rs 1 lakh.
Who can file ITR 1 Sahaj?
Under this, taxpayers having a total income up to Rs 50 lakh, or salaried people with one house property and have income up to Rs 5,000 through other means have to file ITR 1 form.
Who cannot file ITR1 Sahaj?
No individuals or directors in a company come under this slab. They don't have to furnish return under 7th provision to section 139(1) of the Income Tax Act.
Who can file ITR 4-Sugam?
This is for the individuals, HUfs and institutions with a total income up to Rs 50 lakh. Also the individuals possessing a house, and an income from business and profession upto Rs 5,000.
Who cannot file ITR 4-Sugam?
According to the new rule, this form is not for individuals who is director in a firm.
How to file the ITR 1 and ITR 4 forms?
Through the way to fill the form might seem complicated, but if someone follow the instructions provided by the income tax department, things will become easy. Taxpayers need to log onto the website of income tax and go the respective section and follow the instructions to fill the ITR 1 and ITR 4 forms.
(The above story first appeared on LatestLY on Jan 06, 2020 05:44 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).