Changes in the new IT return forms released by CBDT for AY 2020-21

Guest | Last updated: 10 January 2020

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The Central Board of Direct Taxes (CBDT) has released the new Income Tax Return (ITR) forms, ITR-1 and ITR-4, for Assessment Year 2020-2021. Key changes include mandatory passport details for ITR-1 if available, and revised eligibility criteria. Notably, ITR-1 can no longer be used by individuals with joint house property ownership, significant foreign travel expenses, large cash deposits in current accounts, or high electricity bill payments.

Update: CBDT grants relaxation in eligibility conditions for filing of ITR-1 (Sahaj) and ITR-4 (Sugam) for AY 20-21

- A person, who jointly owns a single house property, to file his/her return of income in ITR-1 or ITR-4 Form, as may be applicable, if he/she meets the other conditions.

- A person who is required to file a return due to the fulfillment of one or more conditions specified in the seventh proviso to section 139(1) of the Act, to file his/her return in ITR-1 Form.

The Central Board of Direct Taxes (CBDT) has notified Income Tax forms - ITR 1 and ITR 4 for A.Y. 2020-2021 well in advance. The said forms will be applicable for filing income tax returns for the period April 1, 2019 to March 31, 2020.

Following changes have been made In the forms as compared to previous year's forms:

1. Passport details to be mandatorily provided in ITR-1 (if you have one).

New IT Return Forms AY 2020-21: Key Changes Explained

2. ITR-1 cannot be used for filing in the following cases:

• if an individual has joint ownership in a house property
• if an individual has incurred expenses of Rs. 2 Lakhs or more on foreign travel during the year
• if an individual has deposited Rs. 1 Crore or more in one or more current account
• if an individual has paid electricity bill of more than Rs. 1 Lakh during the year

3. Details about cash and bank transactions like opening balances, receipts/payments and closing balances to be mandatorily provided for all cases where 44AD, 44ADA and 44AE is applicable.

4. Declaration to be made in ITR-4 if the aggregate amount of cash deposit in one or more current account exceeds Rs. 1 Crore. Exact amount of deposit to be mentioned.

5. Declaration to be made in ITR-4 if the aggregate amount exceeding Rs. 2 Lakhs is spent on foreign travel. Exact amount of expenditure to be mentioned.

Changes in new ITRs

6. Declaration to be made in ITR-4 if the aggregate amount exceeding Rs. 1 Lakh is spent on the consumption of electricity. Exact amount of expenditure to be mentioned.

To download the new ITRs: Click Here

Courtesy: Juhin Ajmera

FAQ :

The new Income Tax Return forms ITR-1 and ITR-4 have been released by the CBDT for Assessment Year 2020-2021, applicable for the financial year April 1, 2019, to March 31, 2020.

Passport details must now be mandatorily provided in ITR-1 if you possess a passport.

Individuals with joint ownership in a house property, those who incurred expenses of Rs. 2 Lakhs or more on foreign travel, individuals who deposited Rs. 1 Crore or more in current accounts, or those who paid electricity bills exceeding Rs. 1 Lakh during the year cannot use ITR-1.

For cases where presumptive taxation schemes 44AD, 44ADA, and 44AE are applicable, details regarding cash and bank transactions, including opening balances, receipts/payments, and closing balances, must be mandatorily provided.

In ITR-4, a declaration is required if the aggregate cash deposit in current accounts exceeds Rs. 1 Crore, if aggregate foreign travel expenditure exceeds Rs. 2 Lakhs, or if aggregate electricity consumption expenditure exceeds Rs. 1 Lakh. The exact amounts must be mentioned.