What are the Key Changes in ITR Forms for AY 2020-21


The income tax department released ITR forms for the AY 2020-21 (Assessment Year 2020-21).

Before understanding the key changes in ITR Forms for AY 2020-21, let’s go to the brief of ITR Forms.

The ITR forms are:

ITR 1 (Sahaj)– This form is also known as SAHAJ. This form is mainly for the salaried individuals earning up to 50 lakhs annually.

ITR 2– This forms for individuals and HUFs not having income from profits and gains of business or profession.

ITR 3-This forms for individuals and HUFs having income from profits and gains of business or profession.

ITR 4 (Sugam) – This form is also known as Sugam, it is meant for individuals, HUFs, and firms (other than LLP) having total income up to ₹50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE. Individuals who are either directors in a company or have invested in unlisted equity shares are barred from using this form to file ITR.

ITR 5 –  This forms for persons other than individual, HUF, company, and the person filing ITR 7 form.

ITR 6 – This forms for companies other than companies claiming exemption under section 11.

ITR 7 – This forms for persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only.

ITR V forms – The new forms require a separate table to disclose tax saving investment made in Quarter 1st 2020 for availing them in FY 2019-20. Taxpayers must assess their tax liability for FY 2019-20 and make sure they are maximizing their Section 80C benefits if not already done so.

Now we are discussing the key Changes in ITR forms for AY 2020-21:​

ITR Filing

1)  If the Assessee has taxable income as dividend from domestic companies, you are not eligible to file ITR-1 form for the A.Y.2020-21

2)  The Assessee who is joint ownership of house property cannot file ITR-1 or ITR-4 for the A. Y. 2020-21.

3)  The Assessee needs to answer the following questions related to the number of deposits in current accounts, foreign traveling expenses, and electricity expenses bills in all the ITR forms for the A. Y. 2020-21

  • a)  Have you deposited an amount or aggregate of amounts exceeding Rs. 1 Crore in one or more current accounts in the AY 2020-21?
  • b)  Have you incurred expenditure of an amount or aggregate of the amount exceeding Rs. 2 lakhs for travel to a foreign country for yourself or any other person in the AY 2020-21?
  • c)  Have you incurred expenditure of amount or aggregate of the amount exceeding Rs. 1 lakh on the consumption of electricity in the AY 2020-21?

4) The income tax department has allowed to the Assessee for making certain tax-saving investments for AY 2020-21 till 30th June 2020 because of the COVID -19 lockdown. Deductions under Chapter-VIA-B of IT Act 1961 which includes Section 80C (LIC, PPF, NSC, etc), 80D (medical claim), and 80G (donations) will now be allowed for spending till June 30th, 2020. The dates for making an investment, construction, or purchase for claiming rollover benefit in respect of capital gains under sections 54 to section 54GB has also been extended to June 30th, 2020.

5)  The Assessee has allowed claiming a deduction of donation paid to prime Minister relief fund from 1st April 2020 to 30th June 2020 during COVID -19 under section 80G of Income-tax Act 1961 in the AY 2020-21.

6)  Interchangeability of PAN and Aadhaar Number has been introduced in the new ITR Forms for the AY 2020-21. Now an individual assessee having Aadhaar Number but not having a PAN can file his/her Return of Income by simply quoting his/her Aadhaar Number.

The due date of the Income-tax Return for the Assessment year 2020-21 has been extended from 31st July 2020 & 31st October 2020 to 30th November 2020 and Tax Audit from 30th September 2020 to 31st October 2020.

However, it would be advisable for you to begin the groundwork and avoid the eleventh-hour rush to file your ITR for the Assessment year 2020-21.

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