Key Changes In ITR Forms 1 & 4 For Assessment Year 2020-21

Key Changes In ITR Forms 1 & 4 For Assessment Year 2020-21

Government Notifies Changes In ITR-1, ITR-4 Forms For AY 2020-21. These ITR Forms will be applicable for filing of Income-tax return in respect of income earned during the previous year 2019-20  Individual taxpayers who own a house jointly and paid Rs 1 lakh in electricity bills in a year or spent Rs 2 lakh on foreign travel cannot file their annual income tax returns using the simple ITR-1 form. 

1. Which ITR Forms can be used for filing of return?

A) Salary Income-

1) Income From Salary / Pension - Ordinerly resident Person can File All forms ( ITR                                                                          1, ITR 2, ITR 3, ITR 4) And Not Ordinarily Resident                                                                          & Non-resident person Can file Only ITR 2 ITR 3.

2) Any Individual Who director of Any Company- Can File Only ITR 2 & ITR 3.

B) Income From House Property-

1)Income or loss from one house property- Can File All forms 

2) An individual has brought forward loss or losses to be carried forward under the head House Property / Income or loss from more than one house property / Own a property in joint-ownership - Can File Only ITR 2 & ITR 3

C) Income from Business or Profession-

1) Income From Business & Profession / Income from presumptive business or profession covered under section 44AD, 44ADA and 44AE (for not ordinarily resident and non-resident person) / Interest salary, bonus, commission or share of profit received by a partner from a partnership firm - Only File ITR 3

2) Income from presumptive business or profession covered under section 44AD, 44ADA and 44AE (for a person resident in India)- Only File ITR 3

D) Capital Gains -

*Taxpayer has held unlisted equity shares at any time during the previous year / Capital gains/loss on sale of investments/property - Only Can File ITR 2 & ITR 3

E)Income from Other Sources-

1)Family Pension (for ordinarily resident person)/ Income from other sources (other than income chargeable to tax at special rates including winnings from lottery and racehorses or losses under this head) - Can File All Forms 

2) Family Pension (for not ordinarily resident and non-resident person) / Dividend income exceeding Rs. 10 lakhs taxable under Section 115BBDA / Unexplained income / Person claiming deduction under Section 57 from income taxable under the head ‘Other Sources’ - Can File Only ITR 2 & ITR 3

F) Total Income- 

1) Agricultural income exceeding Rs. 5,000 - File Only ITR 2 & ITR 3

2) Total income exceeding Rs. 50 lakhs - File Only ITR 2 & ITR 3

2. Who has to file return electronically for the Assessment Year 2020-21?

For the Assessment Year 2020-21, every taxpayer shall file the income-tax return electronically except a super senior citizen (whose age is 80 years or above during the previous year 2019-20) who furnishes the return either in ITR-1 or ITR-4.

Till Assessment Year 2018-19, an option was available with every taxpayer, whose income was below Rs. 5 lakhs, to file the return in physical form. This option had been withdrawn from Assessment Year 2019-20. Thus, it is now mandatory for every taxpayer (except super senior citizen) to file the return only electronically.

Return of income can be filed through electronic mode using any of the following three options:

1. E-filing using a Digital Signature (DSC)

2. E-filing without a Digital Signature

3. E-filing under Electronic Verification Code (EVC)