- Date : 08/01/2020
- Read: 3 mins
The Central Board of Direct Taxes has notified the ITR forms in advance to help tax payers file returns efficiently
The Central Board of Direct Taxes (CBDT) usually notifies the ITR forms in the first week of April of the relevant assessment year; however, for assessment year (AY) 2020-21, the CBDT has notified two ITR forms - ITR-1 and ITR-4 in the first week of January itself.
The advance CBDT notification has been warranted due to some major changes in the ITR 1 form - Sahaj and ITR 4 form - Sugam, so that tax payers have a better understanding how to approach filing when it gets activated on the e-filing portal.
What are the changes?
For using either of the two forms, you will have to disclose your valid passport number, if you have one. Ordinary Indian residents who have a total income up to Rs 50 lakh from salary, single house property, interest income, pension, etc. can leverage ITR 1 filing.
However, if the individual has deposited more than Rs 1 crore in the previous Financial Year (FY), has spent over Rs 2 lakh on international travel or incurred electricity consumption exceeding Rs 1 lakh in the previous FY, they cannot use the ITR-1. They will have to use the ITR-4.
Related: How to use the new ITR Form?
Those using the ITR 4-Sugam form will have to disclose the deposit amount in excess of Rs 1 crore, the amount spend on international travel for self or for others. Similarly, if an individual has incurred electricity consumption exceeding Rs 1 lakh in the previous FY, they will have to disclose the amount in the returns.
On the other hand, an individual who is the Director of a company, owns unlisted equity shares, is a joint owner of house property, or has carried forward loss under the head of ‘Income from House Property’, cannot use either ITR-1 or ITR-4 forms.
When can you file your returns?
The changes will come into effect from April 01, 2020 and the facility or e-filing is not active as yet.
For AY 2020-21, the returns can be filed till July 31, unless the date is extended further. If you miss the deadline, you will have to file belated returns and incur an additional one percent penalty (per month) on the outstanding amount, calculated at simple interest starting from the final date of the notified deadline.
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