CBDT notifies ITR 1-Sahaj, ITR 4-Sugam for AY 2020-21: Seeks new disclosures for Passport, cash transactions

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Updated: January 5, 2020 4:24:27 PM

The ITR 1-Sahaj is for individuals being a resident having total income up to Rs.50 lakh, having Income from Salaries, one house property, interest income, Family pension income etc.

 Central Board of Direct Taxes, CBDT, ITR 1-Sahaj, ITR 4-Sugam, Income from Salaries,house property, interest income, Family pensionITR 1-Sahaj is not for an individual who is either Director in a company or has invested in unlisted equity shares

The Central Board of Direct Taxes (CBDT) has notified two Income Tax return (ITR) forms for the assessment year of 2020-21. The income earned during the financial year 2019-20 has to be assessed in the assessment year 2020-21. Several taxpayers had demanded that the notification of ITR forms should be well in-advance as it helped them to file the income tax returns smoothly. “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 the Dept. has notified two ITR forms ITR-1 and ITR-4 for the assessment year 2020-21 in the first week of January,” informs Naveen Wadhwa, DGM at Taxmann.

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 has come out with Income-tax (1st Amendment) Rules, 2020, which shall come into force with effect from April 1, 2020. “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,” adds Wadhwa.

ITR 1-Sahaj and ITR 4-Sugam have been notified by the government. “There are two major changes in the ITR Forms – first, an individual taxpayer cannot file return either in ITR-1 or ITR4 if he is a joint-owner in house property, second, ITR-1 form is not valid for those individuals who have deposited more than Rs. 1 crore in bank account or has incurred Rs. 2 lakh or Rs. 1 lakh on foreign travel or electricity respectively,” says Wadhwa.

Some of the new disclosures asked in the new ITR forms are:

In ITR 1-Sahaj and ITR 4-Sugam

1) Do you have a valid Indian passport? If yes, then passport number has to be provided

In ITR 4-Sugam

2) Have you deposited amount or aggregate of amounts exceeding Rs. 1 Crore in one or more current account during the previous year? If yes, then the amount has to be disclosed.

3) Have you incurred expenditure of an amount or aggregate of amount exceeding Rs. 2 lakhs for travel to a foreign country for yourself or for any other person? If yes, then the amount has to be disclosed.

4) Have you incurred expenditure of amount or aggregate of amount exceeding Rs. 1 lakh on consumption of electricity during the previous year? If yes, then the amount has to be disclosed.

WATCH: Income Tax Refund Status 2019-20: How to check IT refund status online in 5 minutes!

The ITR 1-Sahaj is for individuals being a resident (other than not ordinarily resident) having total income up to Rs.50 lakh, having Income from Salaries, one house property (single ownership), interest income, Family pension income etc. and agricultural income up to Rs.5,000. However, it is not for an individual who is either Director in a company or has invested in unlisted equity shares or has any brought forward / carry forward loss under the head ‘Income from House Property’ or has to furnish return under 7th provison to section 139(1) of the Income Tax Act.

ITR 4-Sugam is for Individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs.50 lakh, one house property (single ownership), having income from business and profession which is computed under sections 44AD, 44ADA or 44AE or Interest Income, Family pension etc. and agricultural income up to Rs.5,000. However, it is not for an individual who is either Director in a company or has invested in unlisted equity shares or has any brought forward / carry forward loss under the head ‘Income from House Property’.

For every assessment year, the last date for filing tax returns is July 31, unless it is extended. If one misses the deadline, and if there is a tax liability, one will have to file belated returns and pay the taxes along with simple interest of 1 per cent per month on the outstanding due, calculated from the July 31 deadline.

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