ITR for AY 2020-21: The Central Board of Direct Taxes (CBDT) has today notified Income Tax Return forms 1 to 7 for the Financial Year 2019-20 (Assessment Year 2020-21). The new notification announces rule changes in the Income Tax Rules 2020. Taxpayers including individuals, Hindu undivided family, professionals and businesses, will now be able to avail benefits of savings or investments made from April 1 to June 30, following the ITR filing extension provided by the finance ministry owing to COVID 19 pandemic.

In the forms notified by the government, taxpayers will now have dedicated space in each of the ITR forms – Sahaj (ITR-1), Form ITR-2, Form ITR-3, Form ITR-4 (Sugam), Form ITR-5, Form ITR-6, Form ITR-7 and Form ITR-V – to describe investments of expenditures made by them during the quarter ended June 30. These will get counted in deductions or exemptions.

Earlier this month, Finance Minister Nirmala Sitharaman had announced that due date for filing all income tax returns has been extended further from July 31 to November 30. The Centre had earlier extended the deadline for receiving Form-16 from 20th June 2020 to 30 June 2020 via an ordinance dated March 31, 2020.
FM Sitharaman in her address said, “The due date of the income tax return for FY 2019-20 will be extended from 31st July 2020 & 31st October 2020 to 30th November 2020 and Tax audit from 30th September 2020 to 31st October 2020”. Date of assessments getting barred on 30th September 2020 has also been extended to 31st December 2020 and those getting barred on 31st March 2021 extended to 30th September 2021.

Here are some details of the new forms:

ITR 1 Sahaj: This form is for individuals being a resident (other than not ordinarily resident) having total income upto Rs 50 lakh, having Income from salaries, one house property, other sources (Interest etc.), and agricultural income up to Rs 5000 (Not for an individual who is either a director in a company or has invested in unlisted equity shares).

ITR 2: This form is for individuals and HUFs not having income from profits and gains of business or profession.

ITR 3: For individuals and HUFs having income from profits and gains of business or profession.

ITR 4 Sugam: For individuals, HUFs and Firms (other than LLP) being a resident having a total income upto Rs 50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE.

ITR 5: For persons other than (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7.

ITR 6: For Companies other than companies claiming exemption under section 11.

ITR 7: For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only.