The Income Tax Department has released the Income Tax Return Form (ITR Form) for the financial year 2019-20. For this, the government has also issued a notification. The department has issued 7 different forms this time. These include ITR-1 (Sahaj), ITR-2, ITR-3, ITR-4 (Sugam), ITR-5, ITR-6, ITR-7, and ITR-V (verification) forms. The Income Tax Department had earlier withdrawn Form 1 and Form 4 to include changes in tax rules due to the Covid-19 epidemic.
#Who is liable to file Form ITR-4?
ITR-4 applies to resident individuals, HUFs, and firms (other than LLPs), whose total income under 44AD, 44ADA, or 44AE is up to Rs 50 lakh on an estimated basis for reporting income from business and profession. The form is broadly in the earlier format except for changes in the reporting of assets and liabilities. Taxpayers using ITR-4 will require details of cash and bank transactions specifically related to the business.
#Who can not file Form ITR-4?
An individual taxpayer cannot file an Income Tax Return in Form 1 (Sahaj) or Form 4 (Sugam) if he/she is the joint owner of the house property, either a companies’ director or has invested in unlisted equity shares.
#Who else has to fill the ITR form?
ITR 1 Form: Citizens with an income up to Rs 50 lakh can fill this form. This includes income from salary, a house, and interest.
ITR 2 Forms: ITR 2 Forms can be filled with individual and HUFs, which do not earn any profit from the business or profession.
ITR 3 Form: This form is filled by individuals or HUF who have income from business or profession.
ITR 4 Form: Sugam Form is for those whose annual income from business or profession is up to Rs 50 lakh. Individuals who are directors in a company or invest in unlisted equity shares are barred from using this form to file an ITR.
ITR 5 Form: This is for Individual, HUF, Company, and other taxpayers other than those who fill ITR-7 form.
ITR 6 Form: This is for companies other than companies claiming exemption under Section 11.
ITR 7 Form: For companies and people who need to file returns under section 139 (4A) or 139 (4B) or 139 (4C) or 139 (4D).
#What changes have occurred in ITR forms?
These changes in ITR forms:
If you have taxable income as a dividend from domestic companies, then you are not eligible to file ITR-1.
Those jointly owned by the house property cannot file ITR-1 or ITR-4.
Taxpayers need to answer the following questions related to deposits in current accounts, travel abroad and electricity bills in all ITR forms-
1- Have you deposited more than Rs 1 crore rupees in one or more current accounts during the last 1 year? 2- Have you spent more than 2 lakh rupees for yourself or any other person on foreign travel? 3- Have you spent more than 1 lakh rupees on electricity consumption in the last year?
Investment is allowed till 30 June 2020 under section 80C (LIC, PPF, NSC), 80D (Mediclaim), and 80G (donation). And will have to be informed about this.
The new ITR form details all these investments and payments made between April and June to claim the tax deduction.
#What is the last date for filing form ITR-4 for the financial year 2019-20?
The last date to fill the ITR form for the financial year 2019-20 is 30th November 2020.
The government has extended the date of advance tax payment for the financial year 2019-20 to June 30, 2020. In addition, the Center has extended the last date for issuance of Form 16 from June 10, 2020, to June 30, 2020.
Form 16 is a certificate provided by the employer to the employee, with the amount deducted from salary income.
Those unable to complete their tax-saving practice for FY 2019-20 until March 31, 2020, due to a coronavirus-induced lockdown may do so until June 30, 2020.
Notified ITR Schedule DI for the financial year 2019-20
The latest ITR form notified for FY 2019-20 includes a 'Schedule DI', which details taxpayers' investments, expenses, deposits, and payments related to tax savings during the extended period up to 30 June 2020. VI-A claims or for the rollover of investment in the financial year 2019-20.
Schedule DI is contained in ITR Form 1 which has now been re-issued after being notified in January 2020.
Re-issue Income tax return filing Form 1 contains information on investments made between April 1 and June 30, 2020, and is referred to in Schedule D.I.