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Archita Bhattacharjee
| Updated: 04 Jun, 2020 | Category: Income Tax, Latest News

New Income Tax Returns Forms: CBDT Notified FY 2019-20/ AY 2020-21

New ITR Forms 2020-21

This blog will notify the taxpayers who are waiting to file income tax return (ITR) for the Financial Year 2019-20 & AY 2020-21. The Income-Tax (12th Amendment) Rules, 2020 is a vide realism, in the footstep parallel with the amendments ended by the 2019Finance Act. On Friday, the CBDT (Central Board of Direct Taxes[1]) has informed the new Income Tax Return forms for FY 2019-20/ AY 2020-21. It comprises of ITR 1 –‘Sahaj’, ITR (2, 3, 4) ‘Sugam,’ ITR (5, 6, 7) in addition to ITR-V.

The CBDT (Central Board of Direct Taxes) amended the manner of furnishing return of income and New Income Tax Returns Forms for the Assessment Year 2020-21. The Board empowered amended the Income-tax Rules, 1962 under Section 139, read with section 295 of the Income-tax Act, 1961.

This amendment Income-tax Rules 2020 came to be known as 12th amendment. In this amendment, the word ‘or’ shall be inserted at the end, and the items (VII) and (VIII) will be omitted in relation to Rule 12 Clause clause (a), in the proviso, in item (V) of Income Tax Rules 1962.

Types of Forms

New Income Tax Returns Forms have been pronounced by the Central Board of Direct Taxes eyeing at Rule 12 of Income Tax Rules wef 29.05.2020 | ITR | AY 2020-21 and notification number G.S.R. 329 (E) dated 28.5.2020.

Details of New Income Tax Returns Forms

ITR-1-Sahaj

Other than not ordinarily resident for individuals, having Income from Salaries, total income up to Rs.50 lakh, other sources (Interest, etc.), one house property or agricultural income up to Rs. 5 thousand [Not for an individual who has invested in unlisted equity shares or is either Director in a company or]

ITR-2- Form

For Hindu Undivided Families and Individuals not having income from gains of business or profession and profits

ITR-3- Form

For Hindu Undivided Families and Individuals not having income from gains of business or profession and profits

(ITR-4)- Form Sugam

For Hindu Undivided Families, Individuals & Firms (other than LLP) being a resident having income from business and profession, total income up to Rs.50 lakh and income computed under sections 44AD, 44ADA or 44AE. (Not for an individual who has invested in unlisted equity shares or is either Director in a company or)

ITR-5- Form

Any person who is not counted under

  • HUF
  • Individual
  • Company
  • person filing Form ITR-7

ITR-6-Form

Companies not included under companies claiming exemption under section 11

ITR-7-Form

Companies and for persons needed to furnish return U/s 139(4A) or 139(4B) or 139(4C) or 139(4D) only

ITR-V-Form

Indian ITR Verification Form

Wherever the statistics/data of the Return of Income in “Form ITR-1 (SAHAJ), ITR-2, ITR3, ITR-4(SUGAM), ITR-5, ITR-7” filed however NOT verified electronically

Read our article: CBDT Notice on Refunds Release & Welfare fund Eligibility for IT: May, 2020

Due Dates Extensions

  • Finance Minister Sitharaman has opined in her words concerning the New Income Tax Returns Forms that, “the due date of the income tax return for Financial Year 2019-20 will be prolonged/postponed from ‘July 31st, 2020’ & ‘October 31st, 2020’ to ‘November 30th, 2020’.
  • Moreover, the Tax audit has been extended since ‘September 30th 2020’ to ‘October 31st 2020“.  The date of valuations/assessment has been attaining its barrenness on ‘September 30th, 2020’, and has also been extended to ‘December 31st, 2020’. Whatever assessment functionalities meant to be on March 31st, 2021, those are getting barred and extended to September 30th, 2021.
  • Hereby, before filing Income tax return and to select an appropriate new Income Tax Returns Forms, the Taxpayers would need to be cautious of these new revelation requirements.

New ITR Forms Insights

  • PAN number is made optional in ITR-4 if Aadhar number is delivered on behalf. One new clause added in section 44AD, as the electronic mode in totaling to electronic authorization and condensed the presumptive income from 8% towards 6%.
  • The ceiling of maximum row is removed in section 44AE for presumptive income from goods carriages, and “Number of vehicles should not exceed 10 vehicles at any time during the year” is added as a new validation.
  • Experts say that the reviewed new Income Tax Returns Forms for AY 2020-21 are intensifying disclosure compliances. For example, a new drop-down utility to opt for concessional tax regime of 22% offered to corporates or new companies, ‘under section 115BAA’ or ‘115BAB’ in Form ITR-6 for companies delivers.
  • In circumstance of non-repatriation of primary modification within the prescribed time limit, the New Income Tax Returns Forms 3, 5, and 6 seek particulars pertaining to assessee’s choice of paying extra income tax.
  • Experts say that the New Income Tax Returns Forms – V or acknowledgment moreover seeks accreted income on Trust registration cancellation and tax particulars and disclosure of detail relating to the dividend distribution tax (DDT).
  • 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.

Conclusion

It shows the purpose that the government is placing all efforts allowing law-abiding taxpayers to take advantage of spends and investments made throughout the difficult time and also to limit the tax outflows even if they are done after the end of the assessment year. This blog has tried to give you a simple understanding of items grounded on the latest forms and decided notifications.

We at CorpBiz, have professionals and legal expertise to diminish your Income taxability issues as per your business goals. We would assist you with consultation, documentation concerning new Income Tax Returns Forms, as well as submission of other compliances along with the filing of the applications.

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Read our article: CBDT: Specified Income Exempted for Uttarakhand Environment Protection & PCB & Cochin SEZ Authority

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Archita Bhattacharjee

Archita Bhattacharjee is working as Legal Analyst (Team Lead, Research & Development) at Corpbiz and has proving experience about 2 years as Corporate Legal Researcher in law firms as well as Rajya Sabha and authors in diverse publications. She has refined her skills by representing India in Paris, France and the University of Leiden over implications of International Humanitarian and Criminal Law being certified member of many Legal Centers.

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