ITR Form: Major Changes in Income Tax Return Form, More Information Needed: For the convenience of taxpayers, the Income Tax Department has notified the return form for the assessment year 2020-21, about four months in advance. In this, the department has made many changes from the taxpayers and asked for new information. The Income Tax Department usually releases the ITR Form of an assessment year in the first week of April.
On the demand of taxpayers, the Central Board of Direct Taxes (CBDT) has notified two forms this time at the beginning of January only four months ago. The department has just notified ITR Form-1 Saral and ITR-4 Sahaj Form for the assessment year 2020-21. Other forms will also come before the taxpayers. However, these have not been activated yet.
If the joint owner of the house then fill ITR-2
The Income Tax Department has stated that if individual taxpayers or undivided Hindu families (HUFs) with income below Rs 50 lakh annually are joint owners of a house, they will no longer be able to fill up ITR-1. In fact, to save tax, usually working couples jointly buy a house. On this, one gets a large loan from the bank. For 2020-21, they will have to fill the ITR-2 form.
Must provide passport number
The Income Tax Department has made it mandatory for taxpayers who have passports to be given information in the return form from the coming assessment year. This rule will also apply to all return forms other than ITR-1 and ITR-4.
Foreign Tour Details
If a taxpayer has traveled abroad with the family in the financial year 2019-20, he will have to provide more information in the return. If the journey costs more than Rs 2 lakh, then taxpayers will not be able to fill the ITR-1 form. If these taxpayers fall under ITR-4, then they will have to disclose the amount spent.
Exposed high power consumption
If a taxpayer has spent more than Rs 1 lakh on the electricity bill during the financial year 2019-20, then it will not be able to file ITR-1. Such a taxpayer will have to use ITR Form-4 and will also have to give the information about the amount spent on the electricity bill.
SAHAJ Form on deposits over 1 crore
According to the Income Tax Department, if a taxpayer has deposited more than 1 crore in the current account of any one or more banks in 2019-20, then they too have to choose ITR Form-4 ie Sahaj. Also, the total amount deposited during the financial year will also have to be disclosed.
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