Amendments in New Income Tax Return Forms
Due to the outbreak of Covid-19, the due date for filing tax returns in A.Y. 2020-21 extended to November 30, instead of July 31. With the amendments made by the Finance Act 2019, came the changes to be followed while filing ITR Forms.
Recently CBDT has notified some key changes in new IT Forms for A.Y. 2020-21 (i.e. F.Y. 2019-20). These changes account for new disclosures/details which the Taxpayers needs to reveal to the Income Tax department. Some of the key changes that the new ITR Forms will be seeking details can be highlighted as under :
- For deduction under sections 80C, 80D, 80E and so on or donations under section 80G, investment done between April 1 and June 30 can be claimed as deductions for F.Y. 2019-20 for which details will be required to be given in ITR Forms in Schedule DI to claim tax deduction.
- The dates for making investment, construction or purchase for claiming roll over benefit in respect of capital gains under sections 54 to section 54GB was also extended to June 30 and the ITR forms will be seeking details from the tax payers to claim the benefit.
- The new ITR Forms will also be seeking certain questions to be answered by the Taxpayers, questions related to deposits made over Rs 1 crore in their current accounts, spent over Rs 2 lakh during international travel or incurred electricity expenses of over Rs 1 lakh.
- Unlike previous years ITR Forms where only one bank account was supposed to be selected for credit of Income Tax refunds, instead the new ITR forms will allow tax-payers to select more than one bank account for receiving income tax refunds.
Besides the disclosure to be submitted in the new ITR forms, there have been changes relating to eligibility for which ITR form to be filled by Taxpayers. The changes can be listed as :
- The Taxpayer earning taxable income as dividend from domestic companies will not be eligible to file ITR-1 form.
- The Taxpayers with joint ownership of a house property claiming deduction u/s. 24 for Interest on Housing Loan and deduction u/s. 80C for Principal amount of Housing Loan will not be eligible to file ITR-1 or ITR-4, instead they need to file ITR-2 compulsorily.