Notification Regarding Changes in Income Tax Returns Forms 2020-21

1. The Central Board of Direct Taxes (CBDT) has notified on 31.05.2020 regarding changes in the Income Tax Returns (ITRs) forms from 1 to 7 for the Assessment year 2020-21. Earlier, the Finance Minister Mrs. Nirmala Sitharaman had also announced relaxation by way of extension in the due dates to file the ITR & tax audit for the year 2019-20 extended from 31st July & 30th November 2020 till 30th November 2020 and in case of tax audit from 30th September 2020 to 31st October 2020.

2. Every taxpayer including individuals, HUF, professionals&businesses will now be the ability to avail benefits of savings or investments made from April 1 to June 30, following the ITR filing extension provided by the finance ministry owing to the effects on the global pandemic.

3. In the forms notified by the Government, taxpayers will now have the dedicated space in each of the ITR forms to describe investments & expenditures made by them during the quarter ended June 30, which will get counted as exemptions & deductions. Changes have been brought in the-

1.    ITR- Sahaj(ITR-1)

2.    ITR-2

3.    ITR-3

4.    ITR-4(Sugam)

5.    ITR-5

6.    ITR-6

7.    ITR-7

8.    ITR-V

4. The forms also seek details of the taxpayers who have paid over 1 lakh as electricity bills in a year, deposited equal to or more than 1 crore amount, or if incurred Rs.2 lakh expenses on foreign travel in the forms related to ITR-1, ITR-2, ITR-3 or ITR-4 respectively.

5. ITR-4, PAN number is made optional if the Aadhar number is provided. 

6. In section 44AD, a new clause has been inserted as the electronic mode in addition to electronic clearance and reduced the presumptive income from 8% to 6 %.

7. In section 44AE for presumptive income from goods carriage, the ceiling of the maximum row has been removed and a new validation has been provided that the number of vehicles should not exceed 10 vehicles at any time during the year.

Conclusion-

•    Thus, the new amendments suggest that the government is making its sincere efforts to curb the tax leakages and allowing law-abiding taxpayers to avail benefit on the spending and investments made during the difficult time even if they are done after the completion of the assessment year.

•    The revised ITR forms for AY 2020-21 have also increased compliances regarding disclosures. For example, the ITR-6 for companies provides a new drop-down of utility to opt for a concessional tax regime of 22% offered to corporates or new companies under section 115BAA or 115 BAB.

•    The new ITR forms 3, 5, and 6 seek details pertaining to assessee's choice of paying additional income tax in case of non-repatriation of primary adjustment within the limits prescribed time limit.

•    The ITR-V form or acknowledgment additionally seeks disclosure details related to Dividend Distribution Tax and accreted income of Trust registration cancellation and tax details thereon.

•    Accordingly, taxpayers will be required to fill all the details carefully on these disclosure requirements before filling their ITR in the appropriate forms for which changes shall be updated soon on the online portal.

Author:

eStartIndia Team