scorecardresearch
Follow Us:
Friday, July 10, 2020

AY 20-21 ITR forms: Filing returns for high value transactions mandatory, timelines extended amid pandemic

The tax department has also revised the I-T return forms to allow assessees to avail benefits of various timeline extensions granted by the government following the COVID-19 pandemic.

By: ENS Economic Bureau | New Delhi | Published: June 1, 2020 3:05:17 am
itr filing, itr filing last date, itr filing last date 2020, income tax return, income tax return 2019, itr forms, itr forms online,  income tax return online, income tax return filing, income tax return last date, The new ITR forms also require taxpayers to furnish details of tax saving investments/donations made during June 2020 for the 2019-20 separately. (File Photo)

Notifying the income tax returns for assessment year (AY) 2020-21, the Income Tax Department has made it mandatory for assessees to file I-T returns for high value transactions such as deposits in current account worth over Rs 1 crore, electricity bill payment of Rs 1 lakh or more and spending on foreign travel of Rs 2 lakh and above, even if their income is below the taxable limit.

The tax department has also revised the I-T return forms to allow assessees to avail benefits of various timeline extensions granted by the government following the COVID-19 pandemic.

The Central Board of Direct Taxes (CBDT) on May 30 notified Sahaj (ITR-1), Form ITR-2, Form ITR-3, Form Sugam (ITR-4), Form ITR-5, Form ITR-6, Form ITR-7 and Form ITR-V for the assessment year 2020-21 (income earned between April 1, 2019 to March 31, 2020). The new ITR forms also require taxpayers to furnish details of tax saving investments/donations made during June 2020 for the 2019-20 separately.

Nangia Andersen consulting director Shailesh Kumar said the benefit of simpler forms ITR-1, ITR-2 and ITR-4 would not be available to individuals who are either directors in a company or have invested in unlisted equity shares. “The ITR forms are modified in line with new disclosure requirements made in the Income-tax Act for AY 2020-21. Taxpayers would need to be careful of these new disclosure requirements, before filing their ITR and to select an appropriate ITR form,” he said.

The Centre had earlier withdrawn two I-T returns (ITR-1 and ITR-4), which were notified in January, to allow for the changes due to COVID-19. It extended various timelines under the Income-tax Act, 1961, through the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020, extending the time for making investment or payments for claiming deduction under Chapter-VIA-B of the I-T Act that include Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim) and 80G (Donations) for the financial year 2019-20 to June 30, 2020.

The I-T Department usually notifies the ITR forms in the first week of April of the relevant assessment year.

This year, though, the Department notified forms 1 and 2 in January. But after the COVID-19 pandemic, the Department revised the forms and has now notified all ITR forms in the last week of May.

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

While ITR-3 and 6 are filed by businesses, ITR-2 is filed by people having income from residential property; ITR-5 is filed by LLP and Association of Persons (AoP). ITR-7 is filed by persons in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes.

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Business News, download Indian Express App.

Advertisement
Advertisement
Advertisement
Advertisement