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The CBDT had notified ITR 1-Sahaj, ITR 4-Sugam for AY 2020-2021: Seeking new disclosures for Passport, cash transactions

The CBDT had notified ITR 1-Sahaj, ITR 4-Sugam for AY 2020-2021: Seeking new disclosures for Passport, cash transactions

The Central Board of Direct Taxes (CBDT) had notified two Income Tax return (ITR) forms relating to the assessment year of 2020-21. The income which was earned during the financial year 2019-20 must be assessed in the assessment year 2020-21. Many taxpayers had demanded that the notification of ITR forms must be well in advance as it assisted them towards filing the income tax returns smoothly. The Income-tax Department had notified that the ITR forms in the first week of April of the applicable assessment year. Though, in contrast towards the old practice, the department had notified two ITR forms ITR-1 and ITR-4 for the assessment year 2020-21 in the first week of January.

While exercising the powers as conferred by section 139 along with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes had come out with Income-tax (1st Amendment) Rules, 2020, which would come into effect with effect from 1st April 2020. Only the forms had been notified without the return filing utility. Therefore, a taxpayer, who must file the return before the previous year ends, cannot do so until the return filing facility has been activated on the e-filing portal.

ITR 1-Sahaj, as well as ITR 4-Sugam, has been notified through the government. Two major changes have been made in the ITR Forms, which includes that an individual taxpayer cannot file return either in ITR-1 or ITR4 in case he is a joint-owner in house property, and the next change is, ITR-1 form is not valid for those persons who have deposited above Rs. 1 crore in bank account or had incurred Rs. 2 lakh or Rs. 1 lakh on foreign travel or electricity individually.

Some of the new disclosures which have been asked in the new ITR forms are:

In ITR 1-Sahaj and ITR 4-Sugam

1) Does the individual have a valid Indian passport? If yes, then passport number must be provided

In ITR 4-Sugam

2) Has the individual deposited amount or aggregate of amounts above Rs. 1 Crore in one or more than one current account during the preceding year? If yes, then the sum must be disclosed.

3) Has the individual incurred expenditure of an amount or aggregate of the amount above Rs. 2 lakhs for travel to a foreign country for yourself or for any other individual? If yes, then the amount must be disclosed.

4) Has the individual incurred an expenditure of amount or aggregate of the amount above Rs. 1 lakh on the consumption of electricity during the preceding year? If yes, then the amount must be disclosed.

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

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

For each assessment year, the last date for filing tax returns is 31st July, unless it is extended. In case an individual had missed the deadline, and if there is a tax liability, then the individual is required to file belated returns as well as pay the taxes along with simple interest of 1% per month on the outstanding due, calculated from the 31st July deadline.

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Author:

eStartIndia Team



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