Income Tax alert! Department rolls back changes made in ITR Form
In a major development, Income Tax Department on Thursday rolled back changes made in ITR Form. The Central Board of Direct Taxes (CBDT) had notified income tax returns forms for the financial year (FY), which normally come in April, well in advance in January itself.
In a major development, Income Tax Department on Thursday rolled back changes made in ITR Form. The Central Board of Direct Taxes (CBDT) had notified income tax returns forms for the financial year (FY), which normally come in April, well in advance in January itself.
The CBDT has issued two forms-ITR-1 and ITR-4 for the AY 2020-21. There are two major changes in the ITR Forms on house property.
An individual taxpayer cannot file return either in ITR-1 or ITR4 if he is a joint owner in house property and the ITR-1 form is not valid for those individuals who have deposited more than Rs 1 crore in their bank account or incurred Rs 2 lakh or Rs 1 lakh on foreign travel or electricity, respectively.
Some of the changes in new ITR 4 Sugam AY 2020-21 were that if the tax-payer has a passport, its number is to be provided. On incurring aggregate expenses exceeding Rs 2 lakh on foreign travel for self or for others, then the amount has to be specified.
In addition, if any person has deposited an aggregate amount exceeding Rs 1 crore in one or more current accounts, then the aggregate of the amount deposited in all such accounts has to be specified.
If an amount exceeding Rs 1 lakh has been spent on electricity consumption, then the aggregate amount has to be specified.
An important change in new ITR related to disclosure related to cash in case of presumptive tax assesses.
In case of 44AD or 44ADA or 44AE, now the assessee will be required to give opening balance of cash in hand and opening balance of bank accounts and also will be required to give the total amount received in cash during the year, the total amount deposited in bank during the year, the total amount of cash outflow out of cash balance during the year, the total amount of withdrawal from the bank during the year and closing balance of cash in hand and closing balance in banks.
However, now there will be no need to provide figures of unsecured loans, sundry debtors, sundry creditors, amount of closing stock, etc. as was required in earlier years.
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