The government has notified income tax return (ITR) forms for taxpayers for filing returns for assessment year FY 2020-21.

Taxpayers including individuals, Hindu undivided family, professionals and businesses, will be able to avail benefits of savings or investments made between April 1 and June 30, following the extension timelines provided by the finance ministry owing to COVID-19 pandemic.

Taxpayers will have dedicated space in each of the ITR forms - Sahaj (ITR-1), Form ITR2, Form ITR-3, Form Sugam (ITR-4), Form ITR-5, Form ITR-6, Form ITR-7 and Form ITR-V – to describe investments of expenditures made during the quarter ended June 30, which will get counted in deductions or exemptions.

 Major changes in the ITR Forms for A.Y. 2020-21 / F.Y. 2019-20

1. Interchangeability of PAN and Aadhaar Number has been introduced in the new ITR Forms. Now, while filing ITR-1, ITR-2, ITR-3 or ITR-4, an Individual assessee having Aadhaar Number but not having a PAN can file his/her Return of Income by simply quoting his/her Aadhaar Number.

2. While filing ITR-1, ITR-2, ITR-3 or ITR-4, under Nature of Employment, Government employees have been bifurcated as Central Govt. and State Govt. employees. Also, a new option “NA” has been added to the list. This option can be used by individuals claiming Family Pension, etc.

3. In case the assessee is filing Return of Income under Seventh provision to Section 139(1) and was otherwise not required to file Return of Income, following additional details have to be furnished while filing ITR-1, ITR-2, ITR-3 or ITR-4:

a) Details of deposit exceeding Rs.1 crore in one or more current account(s).

b) Details of foreign travel expenditure exceeding Rs.2 lakhs (for self or for any other person).

c) Details of electricity expenses exceeding Rs.1 lakh.

4. “Schedule DI- Details of Investment” has been incorporated in all the ITR Forms, whereby a statement has to be filed for any investment/ deposit/ payments made during the period 01.04.2020 to 30.06.2020 for the purpose of claiming any deduction under Chapter VIA. This schedule varies according to requirements of the related ITR.

5. While filing Form ITR-3, ITR-5 or ITR-6, certain additional details have been asked under Audit Information. These are as follows:

I. Whether assessee is declaring income only under Section 44AE/44AB/44BB/44AD/44ADA/44BBA/44BBB?

II. If No, whether during the year Total sales/turnover/gross receipts of business exceeds Rs.1 crore but does not exceed Rs.5 crores?

  - If the answer to point II above is Yes, whether aggregate of all amounts received including amount received for sales, turnover or gross receipts or on capital account like capital contributions, loans etc. during the previous year, in cash, does not exceed five per cent of said amount?

 - Also, if the answer to point II above is Yes, whether aggregate of all payments made including amount incurred for expenditure or on capital account such as asset acquisition, repayment of loans etc., in cash, during the previous year does not exceed five per cent of the said payment?

6. In ITR-4, under “Schedule BP”, while calculating the Gross Turnover or Gross Receipts under Section 44AD, amounts received through prescribed electronic modes has been incorporated in addition to amounts received through account payee cheque, account payee bank draft and bank electronic clearing system.

ITR-1 (Sahaj): This form is for individuals being a resident (other than not ordinarily resident) having total income up to 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 up to 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.

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