Income Taxes Announced by CBDT

Income Tax Returns- CBDT notifies new ITR Forms

In the new ITR form notified recently for the financial year 2019-20, there are some new disclosures where person who entered into specified transactions, i.e. payment of electricity bill in excess of Rs. 1 Lakh or a deposit of more than Rs. 1 Crore in one or more current accounts or spend in foreign travel exceeding Rs. 2 Lakh, is required to file his IT returns despite income below the taxable limit. In addition, the time for furnishing details of investments, deposit and payments made have also been extended till June 2020 and for the said purpose a new schedule DI has been inserted in the form.

Disclosure in ITR Form

The Income Tax Department has notified the ITR form twice for the Financial Year (FY) 2019-20 (Assessment Year 2020-21) vide following notifications.

  • CBDT Vide Notification No.01/2020/F.No.370142/32/2019-TPL dated 3rd January 2020  notified ITR forms –ITR-1 SAHAJ and ITR-4 SUGAM where Rule 12 was amended to provide that:-
    • ITR-1 and ITR-4 cannot be used by a person who owns a house property in joint ownership.
    • ITR-1 cannot be used by a person who has to furnish return under the seventh proviso to section 139(1) of the Income Tax Act.
  • CBBT vide Notification No.31/2020/F.No.370142/32/2019-TPL dated 29th May 2020 notified all ITR forms (ITR-1 to ITR-7) and Form ITR-V which eventually replaced the above two forms (ITR-1 and ITR-4) notified earlier in the January 2020 and also withdrawn the prohibition imposed on filing of these form.

Changes in ITR disclosures as per new Notification No.31/2020/F.No. 370142/32/2019-TPL dated 29th May, 2020 are as follows:

  1. House propertyAs per Notification dated 3rd January 2020, ITR-1 and ITR-4 cannot be used by a person who owns a house property in joint ownership. However, as per new notified ITR forms, a person owning a property in Joint ownership can also file return in ITR-1 or ITR-4.
  2. Passport details– One needs to furnish the Passport number in ITR-1 SAHAJ and ITR-4 SUGAM, if a person has a valid passport as per notification dated 3rd January 2020. But as per new ITR form notified as per Notification dated 29th May 2020, there is no such requirement.
  3. Deposit– As per Notification dated 3rd January 2020, ITR-1 cannot be used by a person who has to furnish return under the seventh proviso to section 139(1) of the Income Tax Act. However as per new forms notified dated 29th May 2020, a person covered under the seventh proviso can file return in ITR-1 or ITR-4 and need to furnish the amount of deposits if that person has deposited amount or aggregate of the amounts exceeding Rs.1 Crore in one or more current accounts maintained with a banking company or a co-operative bank details
  4. Foreign Travel– As per Notification dated 3rd January 2020, ITR-1 cannot be used by a person who has to furnish return under the seventh proviso to section 139(1) of the Income Tax Act. However as per new forms notified dated 29th May 2020, person covered under the seventh proviso can file return in ITR-1 or ITR-4 and need to furnish the amount of expenditure incurred if that person has incurred an expenditure of an amount or aggregate of the amounts exceeding Rs. 2 Lakh for travel to a foreign country for himself or any other person.
  5. Electricity Consumption As per Notification dated 3rd January 2020, ITR-1 cannot be used by a person who has to furnish return under the seventh proviso to section 139(1) of the Income Tax Act. However as per new forms notified dated 29th May 2020, a person covered under the seventh proviso can file return in ITR-1 or ITR-4 and need to furnish the amount of expenditure incurred if that person has incurred an expenditure of an amount or aggregate of the amounts exceeding Rs. 1 lakh towards consumption of electricity.
  6. Investment Details– In the new ITR forms notified vide Notification dated 29th May 2020, a new schedule DI has been inserted to seek details of the investment, deposit and payments made during the extended period till June 2020 for claiming deduction under chapter V-IA or for rollover of investment in the FY 2019-20 in lieu of COVID pandemic.
  • Return Filling Date
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CBDT vide Notification No.35 /2020/ F.No. 370142/23/ 2020-TPL dated 24th June 2020 notified that the furnishing of return under section 139 thereof, for the assessment year commencing on the –

  • 1st day of April 2019, the end date shall be extended to the 31st day of July 2020;   
  • 1st day of April 2020, the end date shall be extended to the 30th day of November 2020;

This notification shall come into force from the 30th day of June 2020.

About Author: CA Anita Agarwal

CA Anita Agarwal is a practicing Chartered Accountant. She is also a Diploma holder in IFRS conducted by ACCA (UK) and JAIIB qualified banker from IIBF. She has completed her graduation in B.Com (Hons) from Rourkela Municipal College, Odisha She is presently working as an Independent Financial Consultant for various Corporate. Her core competence includes handling loan financing, and providing consultancy on banking and finance matters Anita has 10+ years experience in the Banking & Financial Services industry. She has worked as a Credit Analyst in Commercial Banks as well as Bank Auditor with various CA firms. She has also worked as Financial Due Diligence Consultant with a Big4 Audit & Advisory firm  

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