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    Income tax return forms for FY 2020-21 notified

    Synopsis

    Taxpayers including individuals, Hindu undivided family, professionals and businesses, will be able to avail benefits of savings or investments made between April 1 and June 30, following the extension timelines provided by the finance ministry owing to Covid 19 pandemic.

    The forms also seek details from taxpayers that have paid over Rs 1 lakh in electricity bills in a year, deposited Rs 1 crore in bank account and if incurred Rs 2 lakh expense on foreign travel, in forms Sahaj ITR-1, Form ITR-2, Form ITR-3 and Form Sugam (ITR-4).
    The government has notified income tax return (ITR) forms for taxpayers for filing returns for assessment year FY 2020-21.

    Taxpayers including individuals, Hindu undivided family, professionals and businesses, will be able to avail benefits of savings or investments made between April 1 and June 30, following the extension timelines provided by the finance ministry owing to Covid 19 pandemic.

    Taxpayers will have dedicated space in each of the ITR forms - 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 – to describe investments of expenditures made during the quarter ended June 30, which will get counted in deductions or exemptions.

    The government has extended several timelines under income tax by a quarter from March 31, to allow taxpayers to make investments, payments or donations for claiming exemptions and deductions, besides the roll over benefit of capital gains.

    The forms also seek details from taxpayers that have paid over Rs 1 lakh in electricity bills in a year, deposited Rs 1 crore in bank account and if incurred Rs 2 lakh expense on foreign travel, in forms Sahaj ITR-1, Form ITR-2, Form ITR-3 and Form Sugam (ITR-4).

    Experts pointed to changes incorporated in the ITR forms. For instance, in ITR-1, government employees have been bifurcated in State, Central Government and a new type as “NA” added to the list.

    In ITR-4, PAN number is made optional if Aadhar number is provided. In section 44AD, one new clause added as the electronic mode in addition to electronic clearance and reduced the presumptive income from 8% to 6%.

    In section 44AE for presumptive income from goods carriages, the celling of maximum row is removed and a new validation "Number of vehicles should not exceed 10 vehicles at any time during the year" is added.

    "It shows the intention that the government is putting all efforts to curb the tax leakages and also allowing law-abiding taxpayers to take benefit of spends and investments made during the difficult time even if they are done after the completion of the assessment year," said Kapil Rana, founder of HostBooks Limited.

    The revised ITR forms for AY 2020-21 increase disclosure compliances, experts added. For instance, in Form ITR-6 for companies, provides a new drop down utility to opt for concessional tax regime of 22% offered to corporates or new companies, under section 115BAA or 115BAB.

    The new ITR Forms 3, 5 and 6 seek details pertaining to assessee’s choice of paying additional income tax in case of non-repatriation of primary adjustment within the prescribed time limit.

    The ITR-V form or acknowledgement additionally seeks disclosure of details pertaining dividend distribution tax (DDT) and accreted income on Trust registration cancellation and tax details thereon, experts added.

    "Taxpayers would need to be careful of these new disclosure requirements, before filing their ITR and to select an appropriate ITR form," said Shailesh Kumar, director at Nangia Andersen Consulting.

    The online portal used by taxpayers to file returns will be updated with the changed forms. Due date of all income tax returns for FY20 has been extended to November 30 from July 31 and October 31. The tax audit deadline has also been extended by a month to October 31.
    (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

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    1 Comment on this Story

    Vinod Jain46 days ago
    Is no one checking the article before release. Forms are for FY 20 (AY 2020-21). Article is so confusing.
    The Economic Times