What is in the new ITR 1 Sahaj form for the assessment year 2020-21 and what additional information has been sought from the taxpayers?
The Salary class’s ITR form has come for the financial year 2019-20. The Income Tax Department has released the form on its website. It has been described as ITR-1 Sahaj e-form for the financial year 2019-20.
This form ITR-1 is for those whose total income is up to Rs 50 lakh annually. Total income is from salary, an asset, another source (interest, etc.). Those people can also fill this form, whose agricultural income is up to five thousand rupees. This form is not for those who are directors in a company or have invested in unlisted equity shares.
ITR-1 form requires the details of Income:
Income from salary/pension (for ordinary citizens)
Loss or income from house property
Family pension (for common citizens)
Income from other sources (other than income that is taxed at a special rate, which includes lottery winnings and race-horse or losses within them)
In which format the form ITR-1 is available on the income tax department website?
The Income Tax Department (IT Department) has notified the Income Tax Return Form ITR 1 Sahaj, 2, 3, 4 Sugam, 5, 6, 7, and ITR-V for the financial year 2019-20 (the assessment year 2020-21). The department has also released ITR-1 Sahaj e-form for the financial year 2019-20 on its e-filing website. The ITR-1 form is available in Excel and Java formats on the website.
How can taxpayers take advantage of deduction on investments made during the extended periods due to covid-19?
'Schedule DI' for investments made over an extended period
The deadline for making investments, deposits, payments, etc. to claim a deduction for the financial year 2019-20 has been extended to 30 June 2020. This is for claiming under Chapter VI-A, Section 10AA and Section 54 to 54GB. The corona epidemic has caused an unprecedented situation for the first time. There was no such option in the current ITR form in which deduction can be taken by taxpayers if they are invested after the end of the financial year. Therefore a new schedule has been inserted in the form DI ITR-1 so that taxpayers can take advantage of deduction on investment or deposits made during the extended period.
Details on filing returns under 7th Rule of section 139 (1)
In order to ensure that those who are carrying out high-value transactions, they give income tax returns, the Seventh Rule was added in Section 139 by the Finance (No 2) Act, 2019. Under this rule, every person who does not need to file a return for this reason and his income does not exceed the maximum exemption limit; he will have to file income return if he has in the previous year:
If you have deposited more than Rs 1 crore in one or more current accounts kept in a bank or a co-operative bank.
Because of traveling abroad, he has spent 2 lakh rupees or more for himself or any other person.
If more than 1 lakh rupees are spent to pay the electricity bills.
If a person has to file an income tax return for the conditions under the seventh rule of section 139 (1), then he has to fill the appropriate details in the ITR form. These include the amount deposited in the current account, the amount spent on traveling abroad, or the amount given for the electricity bill.
Other information related to the income tax department
Form 26AS also changed
This year, Form 26as has also been changed. If you have invested money in any new house or flat or stock market, then the income tax department will have to give this information. The Central Board of Direct Taxes (CBDT) has notified the new form of Form 26as.
A new change has been made in it that information on property and share market transactions has also been included in the form. “Form 26as” has been completely redesigned.
Details in ITR
Now it includes details of TDS-TCS, in addition to the details of some financial transactions, tax payments, pending or completed processes related to demand-refunds in a business year by Taxpayer. The details of this will have to be given in the Income Tax Return (ITR).
For its implementation, a new section 285 BB has been included in the Income Tax Act in the Budget 2020-21. The CBDT stated that the revised 26as form became effective from 1 June.