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Thursday, January 9, 2020

Changes in ITR Forms for FY 2019-20

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Changes in ITR Forms for FY 2019-20(AY 2020-21) Download NEW ITR-1 Form New ITR-1 Sahaj Form PDF Download for FY 2019-20 AY 2020-21. Who can Use ITR-1, Who cannot use ITR-1? Changes Made in ITR Filing Forms, Those in Joint Ownership of House to Not Use Simple ITR-1 Form. In addition to this, those who have paid Rs one lakh in electricity bill in a year or incurred an expense of Rs two lakh during foreign travel, too, won't be able to use the simple ITR-1 form. Ministry of Finance has released the Rules for E-Filing for the FY 2019-20 to be around April-July 2020. According to a government notification, two major changes have been effected in ITR forms. The first change bars an individual taxpayer from filing return either in ITR-1 or ITR-4 if he/she is a joint owner in the house property. This change, according to the notification, further requires such an individual to furnish a return of income.

Changes in ITR Forms for FY 2019-20(AY 2020-21) Download NEW ITR-1 Form

The government, which usually notifies forms for filing income tax returns by individuals in April every year, on January 3, 2020, notified the tax return forms for the assessment year 2020-21 (income earning year April 1, 2019, to March 31, 2020). According to the notification, two major changes in the ITR forms have been affected. First, an individual taxpayer cannot file the return, either in ITR-1 or ITR-4, if he is a joint owner in house property. Secondly, ITR-1 form is not valid for those individuals who have deposited more than Rs 1 crore in the bank account or have incurred Rs 2 lakhs or Rs 1 lakh on foreign travel or electricity, respectively, it said. Such taxpayers will have to use different forms, which will be notified in due course.

An individual who ‘owns a house property in joint ownership with two or more persons’, is required to furnish a return of income, the notification said. “Only the forms have been notified without the return filing utility. Thus, a taxpayer, who is required to file the return before the previous year ends, cannot do so until the return filing facility is activated on the e-filing portal.

Who Can Use ITR -1 Sahaj Form for FY 2019-20 (AY 2020-21)

(a) in the case of a person being 2[an individual who is a resident other than not ordinarily resident and] where the total income includes income chargeable to income-tax, under the head,—
(i) "Salaries" or income in the nature of family pension as defined in the Explanation to clause (ii) of section 57; or
(ii) "Income from house property", where the assessee does not own more than one house property and does not have any brought forward loss 3[or loss to be carried forward] under the head; or
(iii) "Income from other sources", except winnings from lottery or income from race horses [and does not have any loss under the head], be in Form [SAHAJ] (ITR-1) and be verified in the manner indicated therein:

In Brief: 

This Return Form is to be used by an individual who is a resident other than not ordinarily resident, whose total income for the assessment year 2019-20 does not exceed Rs. 50 lakh and who has income under the following heads:-
    (a) Income from Salary/ Pension; or 
    (b) Income from One House Property; or 
    (c) Income from Other Sources. 
NOTE: Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories.

Who Can't Use ITR-1 Sahaj Form for FY 2019-20

Provided that the provisions of this clause shall not apply to a person who,—
    (I) has assets (including financial interest in any entity) located outside India;
    (IA) has signing authority in any account located outside India;
    (IB) has income from any source outside India;
    (IC) has income to be apportioned in accordance with provisions of section 5A;]
    (ID) has claimed deduction under section 57, other than deduction claimed under clause (iia) thereof;
    (IE) is a director in any company;
    (IF) has held any unlisted equity share at any time during the previous year;
    (IG) is assessable for the whole or any part of the income on which tax has been deducted at source in the hands of a person other than the assessee;]
    (II) has claimed any relief of tax under section 90 or 90A or deduction of tax under section 91; 6[***]
    (III) has agricultural income, exceeding five thousand rupees;]]
    (IV) has total income, exceeding fifty lakh rupees;
    (V) has income taxable under section 115BBDA; 
    (VI) has an income of nature referred to in section 115BBE;
    (VII) owns a house property in joint-ownership with two or more persons; or (VIII) is required to furnish a return of income under seventh proviso to sub-section (1) of section 139.

 In Brief: Who is not eligible to use this Return Form:

A. This Return Form should not be used by an individual who 
    (a) is a Director in a company;
    (b) has held any unlisted equity shares at any time during the previous year;
    (c) has any asset (including financial interest in any entity) located outside India;
    (d) has signing authority in any account located outside India; or
    (e) has income from any source outside India.
B. This return form also cannot be used by an individual who has any income of the following nature during the previous year:- 
    (a) Profits and gains from business and professions;
    (b) Capital gains;
    (c) Income from more than one house property;
    (d) Income under the head other sources which are of following nature:-
    (i) winnings from lottery;
    (ii) the activity of owning and maintaining race horses;
    (iii) income taxable at special rates under section 115BBDA or section 115BBE;
    (e) income to be apportioned in accordance with provisions of section 5A; or
    (f) agricultural income in excess of ₹5,000.
C. Further, this return form also cannot be used by an individual who has any claims of loss/deductions/relief/tax credit, etc. of the following nature:-
    (a) any brought forward loss or loss to be carried forward under the head Income from house property‘;
    (b) loss under the head ‗Income from other sources‘;
    (c) any claim of relief under section 90 and/or section 91;
    (d) any claim of deduction under section 57, other than a deduction under clause (ii) thereof (relating to family pension); or
    (e) any claim of credit of tax deducted at source in the hands of any other person.
    (f) owns a house property in joint-ownership with two or more persons, or is required to furnish a return of income under the seventh proviso to sub-section (1) of section 139.”
    (g) paid Rs one lakh in electricity bill in a year or incurred an expense of Rs two lakh during foreign travel during the financial year.


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Janardhan Randhi

About Janardhan Randhi

I’m the Founder of quickdevops.com I am a Professional Blogger, Application developer,YouTuber. I’ve been blogging since 2015.I spend a lot of time learning new techniques and actively help other people learn web development through a variety of help groups and writing web development tutorials for my website and blog about advancements in web design and development.Besides programming I love spending time with friends and family and can often be found together going out catching the latest movie,planning a trip to someplace I've never been before.

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