Only lately ITR forms for the FY 2019-20 or assessment year 2020-21 have been notified with features as part of the changes set in the Finance Act, 2019. Also, these forms also include some of the columns to accommodate the provisions allowed in the wake of lockdown led by coronavirus crisis. Say for instance, investments to claim deductions have been allowed until June 30 and for the same a separate column has been introduced in the ITRs.
Those below taxable category would also need to file ITR:
But as per the proviso included in Section 139 of the Finance Act, if a person is below the taxable limit but has carried out any 3 of the below transactions he or she will need to compulsorily file tax return.
1. Have made Rs. 1 lakh or more towards electricity bill
2. Have made cash deposits of over Rs. 1 crore in one or more bank accounts
3. Have incurred a expense of Rs. 2 lakh or more on oneself or other for foreign travel
This tenet is introduced such that those entering high value transactions come to the notice of the tax department.
Other Changes notified in the new forms
1.In respect of ITR forms 1 and ITR form 4 an earlier imposed restriction has been done away with:
Now even individuals single house property which is held in joint ownership can also use these forms. It is worth mentioning that nowadays people jointly buy property to avail of higher loan amount as well as maximise tax benefits on housing loans.
Principal repaid is allowed deduction under section80C upto Rs. 1.5 lakh while interest repayment of up to Rs. 2 lakh is also allowed deduction section 24.
2. More disclosure requirement:
Besides maintaining the detail in respect of income as well as investments one also needs to keep a record of cash deposited during the course of the business in bank account. This is because in a case when deposit or expenditure of the taxpayer exceeds the threshold value you would need to disclose the entire amount spent or deposited during the year.
3. More Bank accounts can be considered for crediting Income tax refund:
The new forms has the provision which allowers to select more than one bank account for crediting tax refunds. Nonetheless, it shall be in the interest of taxpayers to select a single account as it can be then better tracked.
Note that the utilities for filing ITR form 1and ITR IV has been activated and so you can start to file these return and not wait for the last hour.