Finance Ministry notifies modified I-T return forms
Allowing disclosure about tax saving investment made during Apr-June for FY 20
The Finance Ministry has notified new Income Tax return forms for Assessment Year 2020-21 (Fiscal Year 2019-20 or FY 20) incorporating changes made due to the Covid-19 pandemic.
The due date for all income-tax return filing has already been extended from July 31 and October 31 to November 30 while the date for returns related with tax audit has been extended to October 31 from September 30.
The new forms have a dedicated column for investment/payment/deposit made during April 1-June 30 for FY 20. Earlier, the Finance Ministry extended the date for making various investment/deposit/payment for claiming deduction under Chapter-VIA-B of Income Tax Act which includes Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), etc. to June 30 from March 31. This means investment/deposit/payment can be made up to June 30 for claiming the deduction under these sections for FY 20.
According to Amarpal Chadha, Tax Partner & India Mobility Leader with EY India, following the extension of tax return filing deadline to November 30, 2020, the CBDT has taken steps to notify income tax return forms for the tax year 2019-20. To give relaxations due to the Covid, CBDT had allowed claiming of investments made during the period April 2020 to June 2020 against income of tax year 2019-20.
There were certain doubts on the modality to claim deduction for such investments. “The notified forms provide for required mechanism to claim such deductions. Also, the new forms are enabled to capture Budget 2019 amendments such as deduction for interest paid on affordable housing loan/ purchase of Electric Vehicle, inter-changeability of PAN and Aadhaar, reporting by certain high spenders etc,” he said.
There are seven forms for Income Tax Returns.
ITR-1 SAHAJ is for individuals being a resident (other than not ordinarily resident) having total income upto Rs.50 lakh, having Income from Salaries, one house property, other sources (Interest etc), and agricultural income upto Rs. 5000.
ITR-2 is For Individuals and HUFs not having income from profits and gains of business or profession.
ITR-3 is for individuals and HUFs having income from profits and gains of business or profession.
ITR-4 SUGAM is for Individuals, HUFs and Firms (other than LLP) being a resident having total income upto Rs.50 lakh and having income from business and profession.
ITR-5 is for persons other than- individual, HUF, company and person filing Form ITR-7.
ITR-6 is for Companies
ITR-7 is for persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only.
In the previous notified forms for FY 20, individuals filing ITR-1 were asked to answer three specific questions: Have you deposited amount or aggregate of amounts exceeding ₹1 crore in one or more current account during the previous year; have you incurred expenditure of an amount or aggregate of amount exceeding ₹2 lakh for travel to a foreign country for yourself or for any other person; and have you incurred expenditure of amount or aggregate of amount exceeding ₹1 lakh on consumption of electricity during the previous year. These three questions are there in the new forms also.