New Delhi: In what will come as a major relief to taxpayers, the Income Tax (IT) department will now allow joint owners of single house property to file income tax returns (ITR) using simple Form 1 (Sahaj) or Form 4 (Sugam). Also Read - Union Budget 2020: Income Tax Relief, Incentives For Home Buyers - Here's What to Expect From Modi 2.0 Govt
The development comes as a rollback of the department’s earlier order, in which, making changes in ITR filing forms, it barred those 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, from filing their ITRs using simple forms. Also Read - 'File it Yourself:' IT Department Releases Calendar, Makes Remembering Income Tax-Related Dates Easier
In a statement, the Central Board of Direct Taxes (CBDT) said, “After the notification, concerns were raised that the changes are likely to cause hardships for individual taxpayers.” Here, ‘notification’ refers to the IT department notifying the two simple ITR forms for the assessment year 2020-21 in January itself, as against the usual practice of doing so in April. Also Read - PMEAC Chairman Bibek Debroy Suggests Revisiting Income Tax Rates Through Reforms, Disinvestment, Privatisation
“The issue was examined and it has been decided to allow jointly owning a single house property to file their ITRs through ITR-1 or 4, as may be applicable, while also meeting other terms and conditions,” the statement added.
The department also announced that an individual, who is required to return due to fulfilment of one or more conditions specified in the seventh proviso to section 139 (1) of the IT Act, will be allowed to do so through ITR-1 Form.