Changes in IT Return filing for assessment year 2020-21

In significant changes in IT return filing forms, individual tax payers owning house property joint ownership and those who have paid Rs. 1L in EB in a year or incurred Rs. 2 L expense on foreign travel cannot file IT retns using the simple ITR - 1 Form.

Notified on Jan 3rd notified tax retn forms for assessment year 2020-21 ( Income year 1 - 04 - 19 to 31 - 03 - 20).

Retns in ITR-1 Sahaj can be filed by an ordinary resident individual whose total income does not exceed Rs. 50 L, while ITR - 4 Sugam is meant for resident Indian individuals, HUFs and firms ( other than LLP ) having a total income of up to Rs. 50 L and having presumptive income from business & profession.

According to the notification, two major changes have been effected. First, and 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 who individuals who have deposited more than Rs 1 CR in bank a/c or have incurred Rs. 2L or Rs. 1L on foreign travel or Electricity respectively.

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 reqd to furnish a retn of income.

'Only the forms have been notified w/o the return filing utility. Thus, a taxpayer, who is reqd to file the retn b4 the previous year ends, cannot do so untill the retn filing facility is activated on the e-filing portal.

Usually the IT Dept notifies in the month of April of the relevant assesment year. However, in contrast to the old practice, ITR -1 & ITR - 4 for the assesment year 2020-21 was notified on 3rd Jan, 2020

Following are some changes in new ITR 4Sugam AY 2020-21 :-

*[ ] If having Passport, its number is to be given*

*[ ] If incurred aggregate expenses exceeding Rs. 2 lakh on foreign Travel for self or for others, then amount to be specified*

*[ ] If deposited aggregate amount exceeding Rs. 1 crore in one or more current accounts then aggregate of amount deposited in all such accounts to be specified*.

*[ ] If spent amount exceeding Rs. 1 lakh on electricity consumption then specify such aggregate amount*.

*[ ] If any assessee owns property in coownership then he will not be eligible to file ITR 1 Sahaj or 4 Sugam.*

*[ ] In case of 44AD or 44ADA or 44AE now the assessee will be required to give opening balance of cash in hand and opening balance of bank accounts and also will be required to give total amount received in cash during the year total Amount deposited in bank during the year, total amount of cash outflow out of cash balance during the year, total amount of withdrawal from Bank during the year and closing balance of cash in hand and closing balance of banks.*

*[ ] Now there will be no need to provide figures of unsecured loans, sundry debtors, sundry creditors, amount of closing stock, etc. as was required in earlier years*