Income Tax Return: The Central Board of Direct Taxes (CBDT) has notified two Income Tax return (ITR) forms for the assessment year of 2020-21 recently. The two forms issued are - ITR-1 and ITR-4. The ongoing financial year will end of March 31, 2020 and the taxpayers will need forms to assess and file the return in the assessment year 2020-21. Usually, the new forms are released in April but this time, the government has released them in the first week of January.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

ITR-1, also known as “Sahaj" is to be used by salaried individuals whose total income doesn't exceed Rs 50 lakh for the financial year. Meanwhile, ITR-4 can be used to file returns by resident individuals, Hindu Undivided Family (HUFs) and firms (other than LLP) having a total income of up to Rs 50 lakh from business and profession.

WATCH Zee Business TV LIVE Streaming Online -

Income Tax Return: What has changed in the forms?

1. The ITR-1 form will no longer be valid for those individuals who have deposited more than Rs 1 crore in a current bank account or have spent Rs 2 lakh on foreign travel or Rs 1 lakh on electric bills in the relevant financial year.

2. You will have to share passport number for both ITR 1 and ITR 4 forms.

3. In case you co-own a house i.e. jointly with someone, you cannot use either of the forms to file income tax returns.

4. ITR 4 form will need the details of your expenditure of Rs 2 lakh in foreign travel.

5. The same form will also ask if you spend over Rs 1 lakh during the year on electric bills.

Even though the forms have been updated, you have enough time to file the returns. You can complete the filing process before the due date of July 31.