Know which one is applicable for you New ITR forms for FY 2019-20 ?


Know which one is applicable for you New ITR forms for FY 2019-20 ?

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Income Tax
Know which one is applicable for you New ITR forms for FY2019-20

Types of ITR Form  

CBDT has prescribed seven ITR forms - ITR-1 to ITR-7 - that will be used by taxpayers for this assessment year. Here are the key features of the new ITR forms.

The deadline for filing income tax returns (ITR) for FY 2019-20 has been extended to November 30, 2020, for all classes of taxpayers due to the Covid-19 pandemic. Usually, July 31 or October 31 used to be the last date for filing ITR depending on the class of taxpayer. The Central Board of Direct Taxes (CBDT) has already lick started the process of ITR filing for the previous financial years. It has notified the new ITR forms that will be used by different classes of taxpayers for filing ITR.

CBDT has prescribed seven ITR forms - ITR-1 to ITR-7 - that will be used by taxpayers for this assessment year. Here are the key features of the new ITR forms.

ITR-1 (Sahaj)
It is the most simple ITR form meant for resident individuals whose total annual income is less than Rs 50 lakh and income from salaries, one house property, other sources such as interest income and agricultural income up to Rs 5,000. However, if you have incomes from business, profession, capital gains or more than one house property, you can not use ITR-1 form.

ITR-4 (Sugam)

This form is applicable for resident individuals, HUFs and firms (other than LLP) with total income of up to Rs 50 lakh and having income from small business or profession taxable under presumptive income provisions of Sections 44AD, 44ADA or 44AE of Income Tax Act, 1961. However, if these taxpayers have income from capital gains they cannot use ITR-4.

Both the ITR-1 and ITR-4 forms have minimum disclosure requirements. But these forms will not be applicable for an individual who is either a director in a company or has invested in unlisted equity shares.

ITR-2

This form is applicable for individuals and HUFs not having business income but not eligible for ITR 1 (Sahaj) for having income from capital gains or other income as mentioned above.

ITR-3

This for is applicable for individuals and HUFs having business income, but not eligible for ITR 4 (Sugam).

ITR-5, ITR-6, ITR-7
All categories of taxpayers other than individuals and HUFs (for whom ITR-1 to ITR 4 is applicable), companies or charitable trusts/ institutions, are required to use ITR-5 form. Hense, ITR-5 is applicable for partnership firms (other than those qualifying for ITR-4), LLPs, Association of Persons, Body of Individuals, etc., to whom no other form applies.

Companies are required to use ITR-6 form while charitable trusts/ institutions need to file the ITR-6 form.

Worth mentioning here is that the new ITR forms are revised versions of older fomrs to incorporate the benefits of various timeline extensions granted by government due to Covid-19 induced lockdown. With the help of new forms, taxpayers can claim the deductions in respect of tax-saving investments done between April 1 and June 30, 2020 for the previous financial year.

Also, it may be noted that taxpayers having cash deposit in current account of over Rs 1 crore, electricity bill payment of Rs 1 lakh or more and spending on foreign travel of Rs 2 lakh and above are now mandatorily required to file income tax return. 

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