New Delhi: In a significant development, the government has made changes in income tax return (ITR) filing forms. As per new rules, individual taxpayers owning house property in joint ownership and those who have paid Rs one lakh in electricity bill in a year or incurred an expense of Rs two lakh during foreign travel, won’t be able to file their annual ITR using the simple ITR-1 form. Also Read - 'File it Yourself:' IT Department Releases Calendar, Makes Remembering Income Tax-Related Dates Easier
The Income Tax Department usually notifies ITR forms in the first week of April of any assessment year. However, this year, the government notified two ITR forms for the assessment year 2020-21 on January 3 itself. While ITR-1, called Sahaj, can be filed by an ordinarily resident individual whose return does not exceed Rs 50 lakh, ITR-4, called Sugam, is for resident individuals, Hindu Undivided Families (HUFs) and firms which have a total income of up to Rs 50 lakh and those having presumptive income from business and profession. Also Read - PMEAC Chairman Bibek Debroy Suggests Revisiting Income Tax Rates Through Reforms, Disinvestment, Privatisation
According to a government notification, two major changes have been effected in ITR forms. The first change bars an individual taxpayer from filing return either in ITR-1 or ITR-4 if he/she is a joint owner in the house property. This change, according to the notification, further requires such an individual to furnish a return of income. Also Read - Budget 2020 Bonanza: Major Changes in Personal Income Tax Slabs Likely
Secondly, ITR-1 form is not valid for those who have deposited over Rs one crore in their bank account or have incurred Rs two lakh or Rs one lakh on foreign travel or electricity respectively, the notification added.
The IT Department recently announced a calendar to help taxpayers easily remember income tax-related dates of the year 2020.