The ITR forms for filing income tax returns (ITR) for the assessment year 2021-22 has been notified by the government. CBDT has notified all ITR Forms 1 to 7 for AY 2021-22 as per the Notification No. 21/2021 in G.S.R 242(E) dated March 31, 2021. To facilitate taxpayers and to minimize the compliance burden, no significant changes have been made in the ITR Forms this year as compared to last year’s Forms.
“Tax filing exercise this year will be very important for every single taxpayer as this is the first time that taxpayers will have the option to choose a more beneficial tax regime. This year’s ITR forms do not have any major changes, as it should be, there should be as little change as possible so taxpayers find it easy to comply and are able to report information consistently. Besides the choice between the regimes, taxpayers need to report quarterly dividend income earned in FY 2020-21 in order to comply with advance tax provisions similar to how advance tax is calculated and paid on capital gains,” says Archit Gupta, Founder and CEO – Cleartax.
For the income earned during the financial year 2020-21, the assessment year is 2021-22. For the income that one earns from April 1, 2020 to March 31, 2021, the filing of ITR has to happen in the assessment year 2021-2022, the last date of which is generally July 31 of the relevant assessment year unless extended by the government.
ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler Forms that cater to a large number of small and medium taxpayers. Sahaj can be filed by an individual having income upto Rs. 50 lakh and who receives income from salary, one house property / other sources (interest etc.).
Similarly, Sugam can be filed by individuals, Hindu Undivided Families (HUFs) and firms (other than Limited Liability Partnerships (LLPs)) having total income upto Rs. 50 lakh and income from business and profession computed under the presumptive taxation provisions.
Individuals and HUFs not having income from business or profession (and not eligible for filing Sahaj) can file ITR-2 while those having income from business or profession can file ITR Form 3.
Persons other than individual, HUF and companies i.e. partnership firm, LLP etc. can file ITR Form 5.
Companies can file ITR Form 6.
Trusts, political parties, charitable institutions etc. claiming exempt income under the Act can file ITR-7.
There is no change in the manner of filing of ITR Forms as compared to last year.
Who can file ITR 1 Sahaj
The ITR 1-Sahaj is for individuals being a resident (other than not ordinarily resident) having a 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.
Who cannot file ITR1 Sahaj
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 provision to section 139(1) of the Income Tax Act.
Who can file ITR 4-Sugam
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.
Who cannot file ITR 4-Sugam
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’.