Significant changes in income tax return filing forms
In significant changes in income tax return filing forms, individual taxpayers owning house property in joint ownership and those who have paid Rs. 1 lakh in electricity bills in a year or incurred Rs. 2 lakh expense on foreign travel cannot file their annual income return using the simple ITR-1 form.
The government, which usually notifies forms for filing income tax returns by individuals in April every year, on January 3 notified tax return forms for assessment year 2020-21 (income earning year April 1, 2019 to March 31, 2020).
Returns in ITR-1 Sahaj can be filed by an ordinarily resident individual whose total income does not exceed Rs. 50 lakh, while Form ITR-4 Sugam is meant for resident individuals, HUFs and firms (other than LLP) having a total income of up to Rs. 50 lakh and having presumptive income from business and profession.
According to the notification, two major changes in the ITR forms have been effected.
First, an individual taxpayer cannot file return either in ITR-1 or ITR4 if he is a joint-owner in house property.
Secondly, ITR-1 form is not valid for those individuals who have deposited more than Rs. 1 crore in bank account or have incurred Rs. 2 lakh or Rs. 1 lakh on foreign travel or electricity respectively, it said.
Such taxpayers will have to use different forms, which will be notified in due course.
An individual who "owns a house property in joint ownership with two or more persons" is required to furnish a return of income, the notification said.
"Only the forms have been notified without the return filing utility.
Thus, a taxpayer, who is required to file the return before the previous year ends, cannot do so until the return filing facility is activated on the e-filing portal.
Usually, the Income Tax Department notifies the ITR forms in the first week of April of the relevant assessment year.
However, in contrast to the old practice, it has notified two ITR forms ITR-1 and ITR-4 for the assessment year 2020-21 in the first week of January.
Mr. Ajay Kumar Jain, M.Sc, Chairman And Managing Director
Being the Chairman And Managing Director, he focuses on holistic investment planning and wealth management and tries to make investment planning simpler for retail and HNI investors. Investor education is one of the prime things that Mr. Ajay Jain focuses on as he believes financial education is the foundation of successful investing. With over two decades of experience, Mr. Jain has made a mark in the Indian mutual fund industry due to his compassion and sheer hard work.