The changes made in the notified ITR forms ITR-1 and ITR-4 for AY 2020-21 is analyzed compared to preceding AY. The changes in ITR forms for AY 2020-21 are minor in nature but have a vital impact. All the changes in the notified ITR Forms have been spelled out in clear terms.
Introduction
Every year the CBDT notifies ITR forms for various categories of taxpayers and the forms, as applicable to the category of taxpayers, are used by the respective taxpayers.
Changes made in the Income Tax Act, 1961 by the relevant Budget are incorporated in the notified ITR Forms.
For the first time, the CBDT has notified the forms well in advance before the end of the financial year which will end on 31st March 2020.
So far by a first notification of the year (Notification No. 01/2020 dated 03-01-2020), the CBDT has notified the new ITR Forms ITR-1 (known as 'Sahaj', but not so sahaj or easy) and ITR-4 (known as 'Sugam', but not so sugam or easy) for Assessment Year 2020-21 relevant to Financial Year 2019-20.
Way back in 2015, the Punjab & Haryana High Court in the case of Vishal Garg Vs UOI (Appeal No.- CWP No. 19770/2015) by an order dated 29-09-2015 directed the Income-Tax department to ensure that the forms etc. which are to be prescribed for the audit report and for e-filing the returns should ordinarily be made available on the first day of April of the assessment year.
The changes in the ITR forms (ITR-1 and ITR-4) notified for AY 2020-21 are minor in nature compared to last year's notified return forms. But the changes in the ITR forms for the current assessment year 2020-21 have vital impacts that a taxpayer must understand carefully.
Rule 12 of the Income Tax Rules, 1962 prescribes the return filing procedure. The notification has amended Rule 12 for the AY 2020-21.
The changes introduced in the preceding year's notified ITR forms were retained. Provisions related to the filing of returns have been amended by Union Budget, 2019 presented on 05-07-2019 by the Finance Miniter Nirmala Sitaraman.
Prior to this, there were changes in income tax rates for the AY 2020-21 by the Interim Budget presented on 01-02-2019. Subsequently, income tax rates were also changed by an Ordinance in September 2019.
Who are compulsorily required to file a return of income in AY 2020-21
Filing of ITR or Income Tax Return or simply return of Income is governed by the provisions of Section 139 of the Income Tax Act, 1961.
(a) When the gross total income exceeds the basic exemption limit:
As per section 139(1)(b), every person being a person other than a company or a firm, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax (commonly known as ‘basic exemption limit ‘), shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.
From the above provision, it is crystal clear that filing of return of income or ITR does not depend on nature or heads on income but is dependant on the quantum of income.
Under the income tax law, there are 5 (five) heads of income-
1. Income from Salary
2. Income from House Property
3. Income from Business or Profession
4. Capital Gains
5. Income from Other Sources.
The aggregate of all the income under each of the head is the Gross Total Income, from which deduction under chapter VI-A is allowed. Deduction u/s 80C, 80D, 80TTA, etc falls under chapter VI-A. After reducing the deduction u/c VI-A from the Gross Total Income, the derived figure or amount of income is termed as ‘Total Income’. Section 139(1) refers to this ‘Total Income’.
The above provision was amended vide by the Finance Act, 2005, w.e.f. 1-4-2006 and a proviso [6th proviso of section 139(1)] was inserted according to which Total Income so computed above shall be required to be increased by the followings:
1. Exempt long term capital gains u/s 10(38)
[This exemption is withdrawn from AY 2019-20]
2. Exemption claimed u/s 10A, u/s 10B and u/s 10BA.
3. Exemption claimed under-
(a) section 54 or
(b) section 54B or
(c) section 54D or
(d) section 54EC or
(e) section 54F or
(f) section 54G or
(g) section 54GA or
(h) section 54GB.
[Amendment introduced from AY 2020-21]
All these exemptions are claimed from capital gains.
4. Deduction claimed under chapter VI-A
[Chapter VI-A includes section 80C, section 80D, section 80G, etc.]
If the resultant income exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.
In the nutshell, the law is amended to measure the basic exemption limit with reference to Gross Total Income instead of Total Income only. Therefore now if the Gross Total Income exceeds the basic exemption limit then one has to mandatorily file the return of income or ITR.
Presently for the financial year 2019-20 or assessment year 2020-21, the maximum amount which is not chargeable to income tax is Rs. 2,50,000. Therefore, if the Gross Total Income exceeds Rs. 2,50,000 during the financial year 2018–19, the person has to mandatorily file the return of income.
Don't confuse this with the tax relief given up to an income of Rs. 5,00,000 announced in the Interim Budget, 2019. If the Total Income is Rs. 5,00,000 then it is mandatory to file the return of income since it exceeds the basic exemption limit of Rs. 2,50,000 though no tax is payable.
For example, In the case of a salaried individual who has only Income from Salary and if his Income from Salary (before giving any effect of section 80C, 80D, etc.) but after Standard deduction and deduction for tax on employment i.e. Professional Tax, exceeds Rs. 2,50,000 during FY 2019-20 then he or she is compulsorily required to file the ITR.
The following information is for academic knowledge only and contemporary has lost the importance.
There is a provision in section 139(1A) of the Income Tax Act, 1961 as per which an employee may file the return of income to his employer. The provision was inserted in 2002 when returns were filed manually. Though the provision is still kept in the statute but it has lost its relevance after the introduction of online filing of ITRs.
(b) When the taxpayer has incurred loss in any year:
If any person has a loss in any previous year under the head "Profits and gains of business or profession" or under the head "Capital gains" and wishes to carry forward the loss to subsequent year, then it is mandatory to file the return of income and such a return of income must be filed within the due date of filing of return of income. [section 139(3)].
(c) In the case of foreign assets, etc:
Where a resident who is otherwise not required to furnish a return, but-
(a) is a beneficial owner or beneficiary of any foreign asset,
(b) holds any financial interest in any foreign entity,
shall be required to compulsorily file a return of income.
(d) Filing of return in case of expenditure or high-value transactions:
This provision is introduced by the Finance (No. 2) Act, 2019 and is applicable from the assessment year 2020-21.
The Union Budget, 2019 has widened the scope of compulsory filing of return. Normally, the filing return of income is linked to the total income of a person.
However, for the following persons return filing is made compulsory (from the assessment year 2020-21) based on certain high-value transactions even though they are not otherwise required to file a return of income on the basis of total income-
(a) who have deposited more than Rs. 1 crore in one or more current accounts maintained with a bank in a financial year, or (deposit in cash or cheque or otherwise)
(b) who have expended more than Rs. 2 lakh on foreign travel for himself or any other person in a financial year, or
(c) who have incurred more than Rs. 1 lakh on electricity consumption in a financial year, or
(d) who fulfill the prescribed conditions (not yet prescribed),
The above provisions are contained in the seventh proviso to section 139(1) of the Income Tax Act, 1961.
Note: The seventh proviso to section 139(1) is not applicable to a company and a firm. It
applies only to a person covered in section 139(1)(b) which includes an individual or a
Hindu undivided family or an association of persons or a body of individuals,
whether incorporated or not, or an artificial juridical person.
Who can file ITR-1
As per Rule 12, the rules for the filing of ITR-1 are given below-
- ITR-1 can be filed only by an individual.
- The individual must be a resident. Thus a non-resident cannot file ITR-1.
- The Total Income of the individual includes the following incomes only-
a) Income chargeable under the ‘Salaries’
b) Family Pension Income u/s 57(iia)
c) Income from ONE House Property (single ownership) without any carry forward or brought forward of loss. This means the house property must be a self-occupied house property. If the house property is let-out, the interest paid on home loan shall not exceed Rs. 2,00,000 during FY 2018-19.
[The ONE house property must not be in joint ownership with two or more persons. If the property is in joint ownership, ITR-1 cannot be used. As per changes in notified ITR-1 for AY 2020-21, this additional condition is added.]
[The ONE house property must not be in joint ownership with two or more persons. If the property is in joint ownership, ITR-1 cannot be used. As per changes in notified ITR-1 for AY 2020-21, this additional condition is added.]
d) Income from Other Sources like bank interest, interest on income tax refund, etc. The income from other sources shall not include income from winning from lottery or race horses.
Who cannot file ITR-1
An Individual cannot file ITR-1 if the following conditions are satisfied-
1. If he has any foreign assets including shares and bonds
2. If he has any foreign bank accounts
3. If he has any income from foreign sources
4. If he has any income to be apportioned in accordance with provisions of section 5A i.e. Portuguese Civil Code applies
5. If he has claimed deduction u/s 57, other than deduction claimed u/s 57(iia) [Deduction u/s 57(iv) is allowed in ITR-1 as per changes in ITR-1 for AY 2020-21]
6. If he is a director in any company
7. If he has held any unlisted equity share at any time during the previous year
8. If he 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
9. If he has claimed any relief of tax under section 90 or 90A or deduction of tax under section 91
10. If he has agricultural income, exceeding Rs. 5,000
11. If his total income, exceeding Rs. 50 Lakh during FY 2019-20
12. If he has income taxable under section 115BBDA (dividend income from a domestic company above Rs. 10 lakh)
13. If he has an income of nature referred to in section 115BBE (tax on undisclosed income referred to in section 68 or section 69 or section 69A or section 69B or section 69C or section 69)
14. If he owns a house property in joint-ownership with two or more persons [New condition added for AY 2020-21]
15. If he has incurred high-value transactions specified in the seventh proviso of section 139(1) [New condition added for AY 2020-21]
14. If he owns a house property in joint-ownership with two or more persons [New condition added for AY 2020-21]
15. If he has incurred high-value transactions specified in the seventh proviso of section 139(1) [New condition added for AY 2020-21]
1.
|
ITR-1 can be filed only by a Resident Individual.
Thus-
(i) A Non-resident Individual cannot file ITR-1.
(ii) A HUF cannot file ITR-1.
The above rule is kept same as per last year and no changes in ITR-1 are
made for the AY 2020-21.
|
2.
|
Though the Interim Budget, 2019 allowed an Individual two self-occupied
house properties without any notional tax liability on the second house, but
if he owns two house property, he cannot use ITR-1.
No corresponding changes in the ITR-1 for AY 2020-21 have been made to incorporate the changes.
|
Who can file ITR-4
As per Rule 12, the rules for the filing of ITR-1 are given below-
1. ITR-4 can be filed by the following persons-
(i) A resident Individual
(ii) A resident HUF
(iii) A resident firm (but not LLP)
2. The above persons are deriving income from business or profession.
3. The income from business or profession is computed as per section 44AD, section 44ADA or section 44AE of the Income Tax Act, 1961.
These sections are known as the presumptive income scheme where no regular books of accounts are maintained.
Who cannot file ITR-4
The persons mentioned above cannot file ITR-4 even though they are otherwise eligible to file ITR-4 in the following cases, if such a person-
1. has any foreign assets including shares and bonds
2. has any foreign bank accounts
3. has any income from foreign sources
4. has any income to be apportioned in accordance with provisions of section 5A i.e. Portuguese Civil Code applies
5. is a director in any company
6. has held any unlisted equity share at any time during the previous year
7. is an owner of more than one house property, the income of which is chargeable under the head 'Income from house property'
Note: Though
the Interim Budget, 2019 allowed an Individual two self-occupied house
properties without any notional tax liability on the second house, but if he
owns two house property, he cannot use ITR-4.
No
corresponding changes in the ITR-4 for AY 2020-21 have been made to incorporate
the changes.
8. 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
9. has claimed any relief of tax under section 90 or 90A or deduction of tax under section 91
10. has agricultural income, exceeding Rs. 5,000
11. has total income of more than Rs. 50 Lakh during FY 2019-20
12. If he has income taxable under section 115BBDA (dividend income from a domestic company above Rs. 10 lakh)
13. If he has an income of nature referred to in section 115BBE (tax on undisclosed income referred to in section 68 or section 69 or section 69A or section 69B or section 69C or section 69)
14. Owns a house property in joint-ownership with two or more persons [New condition added for AY 2020-21]
14. Owns a house property in joint-ownership with two or more persons [New condition added for AY 2020-21]
Manner of filing of return
No changes in the manner of furnishing return of income are notified for the AY 2020-21. Therefore, the rules for furnishing the return of income as applicable in the last year are applicable for the current assessment year.
The Rules of filing return of income are as follows-
Person
|
Condition
|
Manner
of furnishing ITR
|
Individual or HUF
|
(a) Tax Audit is applicable u/s 44AB
|
Online filing of ITR with a digital signature.
|
(b) Very Senior Citizen (age
is 80 years or more) and filing ITR-1 or ITR-4
|
(i) Online filing of ITR with or without digital
signature, or
(ii) Paper Form filing of ITR
At the option of the assessee.
|
|
(c) Other cases,-viz
(i) Tax Audit
Not Applicable
(ii) Senior
citizens
(iii) Very senior
citizens not filing ITR-1 or ITR-4
Normal salaried individuals are covered here.
|
(i) Online filing of ITR with or without digital
signature.
|
|
Firms
|
(a) Tax Audit is applicable u/s 44AB
|
Online filing of ITR with a digital signature.
|
(b) Other cases (Non-audit cases)
|
(i) Online filing of ITR with or without digital
signature.
|
|
Note: In case a return of income (ITR) is filed
without digital signature, the ITR shall be verified by EVC or by submitting
the ITR-V at CPC, Bangalore within 120 days of the filing of online return by ordinary or speed post after manually signing the ITR-V.
|
||
From the above, it is clear that ITR should be filed online, except in case of a very senior citizen individual filing ITR-1 or ITR-4 where paper filing is allowed.
Read
further: How to Independently File ITR 1 for AY 2019-20
In tax audit cases, it is mandatory to verify the return with a digital signature only.
In other cases (non-audit cases) digital signature is not mandatory to verify the ITR. It is optional.
Where a return of income is not verified with a digital signature, then the same may be verified with EVC through net banking or Aadhar OTP or prevalidated bank accounts or Demat accounts.
Instead of EVC verification, a return may be verified manually. In this case, a return shall be verified by submitting the ITR-V at CPC, Bangalore within 120 days of the filing of online return by ordinary or speed post after manually signing the ITR-V.
Key changes in ITR-1 notified for AY 2020-21
Changes in ITR-1 for AY 2020-21 by amending Rule 12:
1. Joint Owners of house property cannot use ITR-1 and ITR-4: Joint Owners of house property cannot use ITR-1 and ITR-4 even though he is otherwise eligible to file ITR-1 or ITR-4. The joint ownership may be with two or more than two persons.
In the case of joint-owners, the income is divided or appropriated between the joint owners.
2. ITR-1 cannot be used for filing of return under the seventh proviso to section 139(1): A person who is required to file the return for non-financial or non-income basis, as per the seventh proviso to section 139(1), is also restricted from the use of ITR-1.
There are certain non-income criteria on the basis of which a person, who is otherwise not required to file a return of income under the law, is required to compulsory file a return of income as introduced by the Finance (No. 2) Act, 2019 which are outlined below-
1. A person who has deposited amount of more than Rs. 1 crore in aggregate in one or more current accounts maintained with a bank in a financial year.
2. A person who has incurred more than Rs. 2 lakh in aggregate in a financial year for foreign travel for himself or any other person.
3. A person who has incurred more than Rs. 1 lakh in aggregate in a financial year for payment of electricity bills.
4. Any other prescribed conditions. No such condition is yet prescribed.
The above two amendments are made in Rule 12 of the Income Tax Rules, 1962.
In this context, it is important to note that the seventh proviso is applicable only when a person is not required to file a return of income on the basis of income. If a person is required to file a return of income on the basis of his total income i.e. his gross total income exceeds the basic exemption limit of Rs. 2,50,000 then the seventh proviso will not apply to him.
If his gross total income is less than the basic exemption limit of Rs. 2,50,000 but has carried on the specified high-value transactions, then the seventh proviso will trigger and the question of filing of return in ITR forms will arise.
Let us take an example. Mr. Rakesh's income from salary for the FY 2019-20 (AY 2020-21) is Rs. 2,40,000 only. His interest in savings bank account is Rs. 1,100 for the year. He has no income under any other head of income. During the year, he has paid electricity bills of Rs. 1,20,000.
In this case, since his gross total income is Rs. 2,41,000 which is below the basic exemption limit of Rs. 2,50,000, he is not required to file a return on income. Till last AY 2019-20, if he chose to file a return of income voluntarily, then he could have used ITR-1.
The provisions for AY 2020-21 have been changed. For this year, since the gross total income is less than the basic exemption limit, he is not required to file any return of income. But since he has paid electricity bills of more than Rs. 1 lakh, he is required to file the income tax return.
In this given case, Mr. Rakesh cannot use ITR-1 to file the return of income for AY 2020-21 since he is filing the ITR due to the applicability of the seventh proviso to section 139(1).
Let's take another example. Mr. Rakesh's income from salary for the FY 2019-20 (AY 2020-21) is Rs. 3,40,000 only. His interest in the savings bank account is Rs. 1,100 for the year. He has no income under any other head of income. During the year, he has paid electricity bills of Rs. 1,20,000.
In this case, since his gross total income of Rs. 3,41,000 is more than the basic exemption limit of Rs. 2,50,000 he is compulsorily required to file a return of income under section 139(1). Based on his composition of income, Mr. Rakesh has to file ITR-1.
The seventh proviso to section 139(1) will not apply to him. Despite incurring more than Rs. 1,00,000 on the electricity bill, he can file the return of income in ITR-1.
In this context, it is important to note that the seventh proviso is applicable only when a person is not required to file a return of income on the basis of income. If a person is required to file a return of income on the basis of his total income i.e. his gross total income exceeds the basic exemption limit of Rs. 2,50,000 then the seventh proviso will not apply to him.
If his gross total income is less than the basic exemption limit of Rs. 2,50,000 but has carried on the specified high-value transactions, then the seventh proviso will trigger and the question of filing of return in ITR forms will arise.
Let us take an example. Mr. Rakesh's income from salary for the FY 2019-20 (AY 2020-21) is Rs. 2,40,000 only. His interest in savings bank account is Rs. 1,100 for the year. He has no income under any other head of income. During the year, he has paid electricity bills of Rs. 1,20,000.
In this case, since his gross total income is Rs. 2,41,000 which is below the basic exemption limit of Rs. 2,50,000, he is not required to file a return on income. Till last AY 2019-20, if he chose to file a return of income voluntarily, then he could have used ITR-1.
The provisions for AY 2020-21 have been changed. For this year, since the gross total income is less than the basic exemption limit, he is not required to file any return of income. But since he has paid electricity bills of more than Rs. 1 lakh, he is required to file the income tax return.
In this given case, Mr. Rakesh cannot use ITR-1 to file the return of income for AY 2020-21 since he is filing the ITR due to the applicability of the seventh proviso to section 139(1).
Let's take another example. Mr. Rakesh's income from salary for the FY 2019-20 (AY 2020-21) is Rs. 3,40,000 only. His interest in the savings bank account is Rs. 1,100 for the year. He has no income under any other head of income. During the year, he has paid electricity bills of Rs. 1,20,000.
In this case, since his gross total income of Rs. 3,41,000 is more than the basic exemption limit of Rs. 2,50,000 he is compulsorily required to file a return of income under section 139(1). Based on his composition of income, Mr. Rakesh has to file ITR-1.
The seventh proviso to section 139(1) will not apply to him. Despite incurring more than Rs. 1,00,000 on the electricity bill, he can file the return of income in ITR-1.
Apart from the above, the following changes are noted in the ITR forms for AY 2020-21 so far notified on 03-01-2020:
Changes in ITR-1 Forms for AY 2020-21 by amending the Forms:
1. In the 'Part-A General Information' section: One has to mention whether the assessee has a valid Indian Passport or not. If he has a passport, then he is required to provide the passport number.
This information is required to be provided irrespective of any expenditure incurred on foreign travel.
A new question is specially added in the ITR form which asks "Do you have a valid Indian passport". The form will provide a drop-down to select 'Yes' or 'No'. If 'Yes' is selected, then it is mandatory to provide the passport number.
If case the taxpayer does not have any passport in India, then he should select 'No'.
2. In the 'Income from Salary' section: Details of employer needs to be given. earlier this requirement was for ITR-2 and others but not for ITR-1. This year changes are made in the ITR-1.
Details of employer require to mention the TAN, Name of the employer, address of the employer, etc.
If the TAN is provided, then the address of the employer will be prefilled.
In case the taxpayer is employed with multiple employers during the FY 2019-20, then the income from each employer needs to be reported separately. Till last year, the aggregate income from multiple employers was required to be reported.
3. Income from House Property: In the case of reporting of income under the head 'Income from House Property', the taxpayer has to furnish the full Address of the house property in column B2 of the ITR-1. Till last year, it was applicable in ITR-2, etc but not in ITR-1.
If the property is let-out, the name and PAN (or Aadhaar) of the tenant is required to be filled in. It appears that PAN (or Aadhaar) of the tenant is optional. This change is introduced in ITR-1 for this year. Earlier, this was a requirement in ITR-2, etc. but not in ITR-1.
This information is required to be provided irrespective of any expenditure incurred on foreign travel.
A new question is specially added in the ITR form which asks "Do you have a valid Indian passport". The form will provide a drop-down to select 'Yes' or 'No'. If 'Yes' is selected, then it is mandatory to provide the passport number.
If case the taxpayer does not have any passport in India, then he should select 'No'.
2. In the 'Income from Salary' section: Details of employer needs to be given. earlier this requirement was for ITR-2 and others but not for ITR-1. This year changes are made in the ITR-1.
Details of employer require to mention the TAN, Name of the employer, address of the employer, etc.
If the TAN is provided, then the address of the employer will be prefilled.
In case the taxpayer is employed with multiple employers during the FY 2019-20, then the income from each employer needs to be reported separately. Till last year, the aggregate income from multiple employers was required to be reported.
3. Income from House Property: In the case of reporting of income under the head 'Income from House Property', the taxpayer has to furnish the full Address of the house property in column B2 of the ITR-1. Till last year, it was applicable in ITR-2, etc but not in ITR-1.
If the property is let-out, the name and PAN (or Aadhaar) of the tenant is required to be filled in. It appears that PAN (or Aadhaar) of the tenant is optional. This change is introduced in ITR-1 for this year. Earlier, this was a requirement in ITR-2, etc. but not in ITR-1.
4. Income from Other Sources: In the case of reporting of income under the head 'Income from Other Sources', a new row is added for claiming a deduction under section 57(iv).
Deduction u/s 57(iv) is allowed only for income chargeable to tax u/s 56(2)(viii) as income by way of interest received on compensation or on enhanced compensation referred to in sub-section (1) of section 145B.
Key changes in ITR-4 notified for AY 2020-21
Changes in ITR-4 for AY 2020-21 by amending Rule 12:
1. Joint Owners of house property cannot use ITR-1 and ITR-4: Joint Owners of house property cannot use ITR-1 and ITR-4 even though he is otherwise eligible to file ITR-1 or ITR-4. The joint ownership may be with two or more than two persons.
1. Joint Owners of house property cannot use ITR-1 and ITR-4: Joint Owners of house property cannot use ITR-1 and ITR-4 even though he is otherwise eligible to file ITR-1 or ITR-4. The joint ownership may be with two or more than two persons.
In the case of joint-owners, the income is divided or appropriated between the joint owners.
Changes in ITR-4 Forms for AY 2020-21 by amending the Forms:
1. In the 'Part-A General Information' section: One has to mention whether the assessee has a valid Indian Passport or not. If he has a passport, then he is required to provide the passport number.
This information is required to be provided irrespective of any expenditure incurred on foreign travel.
A new question is specially added in the ITR form which asks "Do you have a valid Indian passport". The form will provide a drop-down to select 'Yes' or 'No'. If 'Yes' is selected, then it is mandatory to provide the passport number.
If case the taxpayer does not have any passport in India, then he should select 'No'.
2. Reporting on the seventh proviso to section 139(1) and specified transactions: A set of new questions on the seventh proviso to section 139(1) and specified transactions have been added in the 'Part-A General Information'.
One has to report whether the person is covered by the seventh proviso to section 139(1). A firm is excluded since the said proviso does not apply to a firm.
Other questions on specified transactions have been incorporated in the ITR-4. The form specifically asking whether the person has deposited more than Rs. 1 crore in bank accounts, incurred more than Rs. 2 lakh on foreign travel and incurred more than Rs. 1 lakh on electricity bills. If the answer is affirmative, then the amount of deposit or expenditure is required to be reported.
3. In the 'Income from Salary' section: Details of employer needs to be given. earlier this requirement was for ITR-2 and others but not for ITR-4. This year changes are made in the ITR-4.
Details of employer require to mention the TAN, Name of the employer, address of the employer, etc.
If the TAN is provided, then the address of the employer will be prefilled.
In case the taxpayer is employed with multiple employers during the FY 2019-20, then the income from each employer needs to be reported separately. Till last year, the aggregate income from multiple employers was required to be reported.
3. In the 'Income from Salary' section: Details of employer needs to be given. earlier this requirement was for ITR-2 and others but not for ITR-4. This year changes are made in the ITR-4.
Details of employer require to mention the TAN, Name of the employer, address of the employer, etc.
If the TAN is provided, then the address of the employer will be prefilled.
In case the taxpayer is employed with multiple employers during the FY 2019-20, then the income from each employer needs to be reported separately. Till last year, the aggregate income from multiple employers was required to be reported.
4. Income from House Property: In the case of reporting of income under the head 'Income from House Property', the taxpayer has to furnish the full Address of the house property in column B2 of the ITR-4.
If the property is let-out, the name and PAN (or Aadhaar) of the tenant is required to be filled in. It appears that PAN (or Aadhaar) of the tenant is optional. This change is introduced in ITR-4 for this year. Earlier, this was a requirement in ITR-2, etc. but not in ITR-4.
5. Income from Other Sources: In the case of reporting of income under the head 'Income from Other Sources', a new row is added for claiming a deduction under section 57(iv).
If the property is let-out, the name and PAN (or Aadhaar) of the tenant is required to be filled in. It appears that PAN (or Aadhaar) of the tenant is optional. This change is introduced in ITR-4 for this year. Earlier, this was a requirement in ITR-2, etc. but not in ITR-4.
5. Income from Other Sources: In the case of reporting of income under the head 'Income from Other Sources', a new row is added for claiming a deduction under section 57(iv).
Deduction u/s 57(iv) is allowed only for income chargeable to tax u/s 56(2)(viii) as income by way of interest received on compensation or on enhanced compensation referred to in sub-section (1) of section 145B.
3. Changes in the column for section 44AE: The changes in the column header for reporting income under section 44AE are tabulated below-
3. Changes in the column for section 44AE: The changes in the column header for reporting income under section 44AE are tabulated below-
Column Header
|
Changes
|
Registration No. of goods carriage owned by the assessee
|
Retained
|
Whether owned/leased/hired
|
Absent in the Notification
|
Gross Vehicle Weight of goods carriage (in MT)
|
Retained
|
Presumptive income u/s 44AE for the carriage of the goods (Computed @ Rs.1000 per ton per month in case tonnage exceeds 12MT, or else @ Rs.7500 per month) or the amount claimed to have been actually earned, whichever is higher
|
Column is bifurcated as mentioned below
|
Total Presumptive Income in respect of the Good Carriage
|
Added
|
Income claimed to have been actually earned in respect of goods carriage
|
Added
|
Presumptive income u/s 44AE
|
Added
|
4. Summary of Cash and Bank account reporting: A new column is added to report summary of transactions in cash and bank account (all bank accounts in aggregate) during the FY 2019-20.
Column G requires reporting of 'Particulars of cash and bank transactions relating to presumptive business' in the following format-
Hence, one needs to maintain cash and bank accounts in a regular manner to report the transactions. Earlier, under the presumptive income scheme, only sale bills were required to be maintained to determine the turnover.
5. Financial Particulars in ITR-4 is missing in the Notification: The requirement of furnishing the balance as on 31st March of the previous year is missing in the notification dated 03-01-2020 for AY 2020-21.
5. Financial Particulars in ITR-4 is missing in the Notification: The requirement of furnishing the balance as on 31st March of the previous year is missing in the notification dated 03-01-2020 for AY 2020-21.
The financial particulars inter alia required to report Capital, Loan funds, Advances, Sundry Creditors, Fixed Assets, Inventories, Debtors, Cash and Bank Balances, etc.
The above changes in the ITR forms have been notified well in advance. Although return filing utility for online filing of returns has not been released, one can prepare himself for at least reporting requirements in the ITR for AY 2020-21.
Read the full text of the notification.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 3rd January, 2020
INCOME-TAX
G.S.R. 9(E).—In exercise of the powers conferred by section 139 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—
1. Short title and commencement.—(1) These rules may be called the Income-tax (1st Amendment) Rules, 2020.
(2) They shall come into force with effect from the 1st day of April, 2020.
2. In the Income-tax rules, 1962 (hereinafter referred to as the principal rules), in rule 12,−
(a) in sub-rule (1),-
(I) in the opening portion, for the figures “2019”, the figures “2020” shall be substituted;
(II) in clause (a), in the proviso,-
(i) in item (V), the word “or” occurring at the end shall be omitted;
(ii) after item (VI), the following items shall be inserted, namely:-
“(VII) owns a house property in joint-ownership with two or more persons; or
(VIII) is required to furnish a return of income under seventh proviso to sub-section (1) of section 139.”;
(III) in clause (ca), –
(ii) in the proviso, after item (V), the following item shall be inserted, namely:-
“(VI) owns a house property in joint-ownership with two or more persons.”;
(b) in sub-rule (5), for the figures “2018”, the figures “2019” shall be substituted.
3. In the principal rules, in Appendix II, for Form “Sahaj (ITR-1)” and “Sugam (ITR-4)”, the following Forms shall, respectively, be substituted, namely:-
[Notification No. 01/2020/F. No. 370142/32/2019-TPL]
ANKUR GOYAL, Under Secy.
Note : The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number S.O.969(E), dated the 26th March, 1962 and last amended by the Income-tax (16th Amendment) Rules, 2019, vide notification number GSR. 960(E), dated 30th December, 2019.
Download notified ITR-1 (in pdf) for AY 2020-21
Download notified ITR-4 (in pdf) for AY 2020-21
Download Notification No. 01/2020 dated 03-01-2020
Update:
CBDT grants
relaxation in eligibility conditions for filing of Income-tax Return Form-1
(Sahaj) and Form-4 (Sugam) for Assessment Year 2020-21. Read more...
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