New Income Tax Return forms ITR1 – SAHAJ, and ITR4 – Sugam for AY 2020-21 (FY 2019-20) is notified by the income tax department. The new ITR forms are currently available on the Income Tax website in PDF format. The Java-based tax preparation utility is not yet released. This time the income tax department has relaxed the rules for filing ITR1, high spenders can also file Sahaj (ITR1) for AY 2020-21 (FY 2019-20).
In this post, we will take a look at New Income Tax Return forms as well as discuss changes incorporated in the new form. Well, before taking a look at New ITR forms, let’s first understand Income Tax Slabs for FY 2019-20 or AY 2020-21.
|Income Tax Slabs & Rates FY 2019- 20, AY 2020-21|
|Income tax Slabs||General Category||Sr.Citizen||Very Sr. Citizen|
|Up to Rs. 2. 5 Lakh||NIL||NIL||NIL|
|Rs.2.5 Lakh to 3.0 Lakh||5%||NIL||NIL|
|Rs.3.0 Lakh to Rs.5.0 lakh||5%||5%||NIL|
|Rs.5.0 Lakh to Rs.10.0 Lakh||20%||20%||20%|
|Above 10.0 Lakh||30%||30%||30%|
From the above tax slab details, it is easy to make out how much tax you need to pay as an individual. The tax-free income is up to 2.5 Lakh. From 2.5 Lakh to 5 Lakh you need to pay 5% tax. From 5 Lakh to 10 Lakh you need to pay 20% tax and if your income is above 10 Lakh you need to pay 30% Tax.
Things to consider while filing Income Tax return in FY 2019-20
- For salaried person, standard deduction is increased from Rs.40000 to Rs.50000.
- If your income is below 5 Lakh you can get income tax rebate under section 87A.
- TDS threshold on interest earned on bank fixed deposit and post office is raised from Rs.10000 to Rs.40000.
- You will get exemption from Income Tax on notional rent on second self-occupied house property.
New Income Tax Return Forms (ITR) – AY 2020-21 – Changes
You can download latest ITR 1 and ITR 4 from Income tax website. You need to visit Forms/Downloads section in order to download ITR from.
Who can use ITR1 (SAHAJ)?
# ITR1 SAHAJ can be used by an individual whose income primarily include salary income and whose total income does not exceed 50 lakh during the FY.
# You can file this form if you have pension income, interest income from fix deposit, saving bank account, family pension income or agriculture income up to Rs.5000.
# This form cannot be filed by an individual who is either Director in a company or has invested in unlisted equity or has brought forward / carry forward loss under the head ‘Income from House Property’
Who can use ITR4 (Sugam)?
# ITR4 Sugam can be filed by resident individuals, HUFs and firms having income from business & profession having total income up to 50 Lakh during FY.
# High spender can file this return. High spender means those who have deposited 1 Cr or more in the current account or spent 2 Lakh or more on foreign travel or spent more than 1 Lakh on electricity.
# You can file this return, If you have business income under 44AD or 44AE.
# ITR4 can be filed if you have income from other sources having income up to 50 Lakh (Excluding lottery income or horse race income).
Key Changes in Income Tax Return Forms
Following key changes are observed in Income tax return forms.
Passport Details – New field
A newly introduced form contain field about passport information. Now tax payer needs to mention passport number in the Income tax form.
The new field of passport is not mandatory. If you don’t fill up passport number you will be allowed to file return. However, if you have valid passport you should mention correct passport number this is to avoid considering form as defective or incomplete.
Restriction of 153A and 153C
Up to last year ITR1 was allowed to filed for section 153A and 153C. Section 153A and 153C in response to a notice that pertains to search and requisition assessments. For AY 2020-21, return can be filed in response to notice under 139(9), 142(1) or 148.
A new field of Rebate under section 87A is added in the ITR 1 Sahaj Form. This new provision as per budget 2019.
Under new ITR4 Form detail about High spender is asked. You need to furnish detail such as if you have deposited more than 1 Cr in bank account or if you have spent more than 2 Lakh in foreign travel or spent more than 1 Lakh per year on consumption of electricity.