In a notification, the CBDT issued ITR 1 (Sahaj), ITR 2, ITR 3, ITR 4 (Sugam), ITR 5, ITR 6, ITR 7 and ITR V forms on 30th May 2020, a day before promised date of 31st May 2020. The Major relief was given to make investment and claim deduction in 80C and other for Financial Year 2019-20 till 30thJune 2020. Taxpayers can claim deduction only if they invest during the Financial Year, i.e. from 1st April 2019 to 31st March 2020. However, because of Covid19 Lockdown across India since 22nd March 2020, CBDT has given relief so that taxpayers can invest and claim deduction in 80C till 30th
June 2020.

Key Changes in ITR forms for Financial Year 2019-20

1) The new forms require a separate table to disclose tax saving investment made during 1st April 2020 to 30th June 2020 for availing them in FY 2019-20. Deductions under Chapter-VI of Income Tax Act which includes Section 80C (LIC, PPF, etc), 80D (Mediclaim) and 80G (donations) will now be allowed for spending till 30th June.

2) Taxpayers having taxable income as dividend from domestic companies, you are not eligible to file ITR-1 form.

3) Those with joint ownership of a house property cannot file ITR-1 or ITR-4.

4) Taxpayers need to answer the following questions related to deposits in current accounts, foreign travel and electricity bills in all the ITR forms:

     a) “Have you deposited an amount or aggregate of amounts exceeding Rs. 1 Crore in one or more current account during the previous year?”

     b) “Have you incurred expenditure of an amount or aggregate of amount exceeding Rs. 2 lakhs for travel to a foreign country for yourself or for any other person?”

     c) “Have you incurred expenditure of amount or aggregate of amount exceeding Rs. 1 lakh on consumption of electricity during the previous year?”

5) One needs to disclose the Passport number if held by the taxpayer. This is to be furnished both in ITR 1-Sahaj and ITR 4-Sugam. Hopefully, it will be made mandatory in other ITR Forms as and when they are notified.

6) Furnishing of PAN/Aadhaar No. of tenant is mandatory, if tax is deducted under section 194-IB. and Furnishing of TAN of tenant is mandatory, if tax is deducted under section 194-I. Under Section 194I a person (other than Individuals and Hindu Undivided Family) who is paying rent is liable for Tax deduction at source. The tax can be deducted at source when the total amount of rent to be received or paid in a particular financial year is more than Rs. 1,80,000. While Individuals and Hindu Undivided Families who come under the purview of the taxation are also liable for tax deduction at source, the aggregate limit was previously Rs.1,80,000 but now with effect from 1st June 2017 the rule of the payments has changed. Now both Individuals and Hindu Undivided Family are obligated for tax deduction at source at 5% of the rent collected given the rent exceeds Rs 50,000.

If you have rented out a property, then you will have to provide name and Aadhaar or PAN details of your tenant, if available.

7) In ITR-4, PAN number is made optional if Aadhar number is provided. In section 44AD, one new clause added as the electronic mode in addition to electronic clearance and reduced the presumptive income from 8% to 6%.

8) In section 44AE for presumptive income from goods carriages, the celling of maximum row is removed and a new validation “Number of vehicles should not exceed 10 vehicles at any time during the year” is added.

9) Details of Government Employees in ITR Form 1. In ITR Form 1 government employees have been bifurcated in State, Central Government and a new type as
“NA” added to the list.

10) In ITR-4, PAN number is made optional if Aadhar number is provided. In section 44AD, one new clause added as the electronic mode in addition to electronic clearance and reduced the presumptive income from 8% to 6%.

11) In Form ITR-6 for companies, provides a new drop-down utility to opt for concessional tax regime of 22% offered to corporates or new companies, under section 115BAA or 115BAB.

12) The new ITR Forms 3, 5 and 6 seek details pertaining to assessee’s choice of paying additional income tax in case of non-repatriation of primary adjustment within the prescribed time limit.

13) Details of Notice / Order DIN Number and date to be provided by Taxpayers who has replied or received notice in Section, including Date of such Notice or Order.

The Due dates for Filing of all ITRs for 2019-20 is extended from 31 July 2020 to November 30, 2020 due to the lockdown and providing enough time for taxpayers to compile data.

Author
CA Ankit Gupta