CBDT notifies Form ITR 1 and ITR 4 for AY 2020-21 [Read Notification]

The Central Board of Direct Taxes ( CBDT ) has notified Form ITR 1 and ITR 4 for the Assessment Year 2020 – 21.

The ITR 1 Form, also called Sahaj, is the Income Tax Return Form for salaried individuals (i.e. salary/pension/family pension and interest income). The ITR-4 Form is the Income Tax Return form for those taxpayers, who have opted for the presumptive income scheme as per Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act.

The notified ITR Form contains significant changes which is individual taxpayers owning house property in joint ownership and those who have paid ₹1 lakh in electricity bills in a year or incurred ₹2 lakh expense on foreign travel cannot file their annual income return using the simple ITR-1 form.

According to the notification, two major changes in the ITR forms have been affected. First, an individual taxpayer cannot file return either in ITR-1 or ITR4 if he is a joint-owner in house property.

Secondly, ITR-1 form is not valid for those individuals who have deposited more than ₹1 crore in the bank account or have incurred ₹2 lakh or ₹1 lakh on foreign travel or electricity respectively, it said.

The Income Tax Department also mandates If having Passport, its number is to be given. If incurred aggregate expenses exceeding Rs. 2 lakh on foreign Travel for self or for others, then amount to be specified.

The Forms also asked information about deposits aggregate amount exceeding Rs. 1 crore in one or more current accounts then the aggregate of the amount deposited in all such accounts to be specified. If any assessee owns property in co-ownership then he will not be eligible to file ITR 1 Sahaj or 4 Sugam.

In case of 44AD or 44ADA or 44AE now the assessee will be required to give opening balance of cash in hand and opening balance of bank accounts and also will be required to give total amount received in cash during the year total Amount deposited in bank during the year, total amount of cash outflow out of cash balance during the year, total amount of withdrawal from Bank during the year and closing balance of cash in hand and closing balance of banks.