10 new Changes in Income Tax Return Forms for A.Y. 2020-2021
Every taxable person has to file Return of Income by the end of its due date. The Income Tax department usually notifies Income Tax Return (ITR) forms in first week of April of relevant A.Y. However, this year IT department revised form ITR-1 and ITR-2 that was notified in Jan, 2020 and notified all forms in last week of May, 2020 due to Covid 2019.
For Financial Year 2019-20, taxpayers will be able to avail benefit of savings or investment made till 30th June 2020. Taxpayers would be given a separate space in Income Tax Return forms to describe Investments made during the quarter ended June 30, which will get counted in deductions or exemptions.
Changes in Income tax Return Forms
The changes in Income Tax Return forms are result of changes in tax provisions announced in the Union budget. The notified changes are-
1. New check point inserted to cross confirm the applicability of seventh proviso to section 139(1)
- Details of Electricity bills of over Rs. 1 lakh in a year
- Deposit of Rs. 1 crore in bank account
- Expense of Rs. 2 lakh on foreign travel, etc.
Such details are to be provided in forms ITR-1, ITR-2, ITR-3 and ITR-4.
2. New schedule for DI
Details of Investment (DI) has been inserted allowing taxpayers to make certain tax saving investments for FY 2019-2020 till 30th June 2020. Here, deductions would be provided in respect of Chapter VIA which includes section 80C, 80D, 80G, etc. Detailed annexure has been provided in the following picture. These details are to be provided in Form ITR-1, ITR-2, ITR-3, ITR-4, ITR-5 and ITR-6.
Some additional requirements are-
However, ITR-2 includes additional details in the above mentioned annexure as shown below-
3. More than one bank Account
Now, we have option to choose more than one bank account to claim refund as against option to choose only one bank account earlier. However, in case of details provided of more than one bank account, in such case refund will be credited to such bank account as decided by the CPC.
In case of Non-resident, if there is no Bank account in India and assesse claims refund then some additional details has to be provided which are mentioned as below.
- SWIFT Code
- Name of Bank
- Country location
These details are to be provided in form ITR-2, ITR-3, ITR-4, ITR-6 and ITR-7.
4. Disclosure of Directorship
Assesse need to disclose about his directorship in companies or details of holding equity shares in unlisted company. The addition to this information is the “Type of Company”. Such information has to be provided in form ITR-2, ITR-3, ITR-5 and ITR-6.
5. STT paid
Introduced new schedule 112A in line with section 112A i.e. Securities Transaction Tax (STT) paid on sale of Equity shares, unit of equity oriented fund or unit of a business trust.
Introduced new schedule 115AD (1)(b)(iii) proviso i.e. STT paid on sale of Equity shares, unit of equity oriented fund or unit of a business trust in case of Non Resident.
These details are to be provided in form ITR-2, ITR-3, ITR-5 and ITR-6.
6. Bifurcation of Losses in Return
In schedule CFL i.e. Carry forward of Losses, details of losses has to be bifurcated into Normal loss and PTI (Pass through Income). These details are to be provided in form ITR-2, ITR-3, ITR-5 and ITR-6.
Following are some additional disclosures made under Schedule PTI in form ITR-2 which are as under. Such details to be provided in form ITR-2, ITR-3, ITR-5, ITR-6 and ITR-7.
- Investment entity covered by section 115UA/115UB.
- Bifurcation of amount in following 3 ways.
- Current year Income
- Share of current year loss distributed by Investment fund
- Net Income/Loss
7. New Disclosure for presumptive schemes
There is a new disclosure criteria regarding declaring income under presumptive income scheme such as section 44AE, 44B, 44BB, 44AD, 44ADA, 44BBA, or 44BBB. These details to be provided in form ITR-3, ITR-5 and ITR-6.
8. Additional Disclosure in ITR-3, ITR-5 and ITR-6
Following additional information has to be disclosed in Point 11(da) and point 17. These details to be provided in form ITR-3, ITR-5 and ITR-6.
- Point 11:-Any amount debited to profit and loss account of the previous year but disallowable under section 43B.
- Sub point (da):- It provide that any sum payable by the assesse as interest on any loan or borrowing from deposit taking NBFC or systematically non-deposit taking NBFC.
- Point 17:-Whether assessee is exercising option under subsection 2A of section 92CE (Tick – Yes/ No) [If yes, please fill schedule TPSA]. The schedule TPSA i.e. Tax on Secondary Adjustments as per section 92CE(2A) is a new addition shown below.
9. Additional Points in ITR-7
1. In case of ITR-7, four more details are added in “Details of registration or approval under Income tax act (mandatory, if required to be registered)” under basic personal information which are mentioned as below.
- Whether Application for registration is made as per new provisions.
- Section under which the registration is applied.
- Date on which the application for registration/ approval as per new provisions is made.
- Section of exemption opted for under the new provisions.
2. In form ITR-7, following two points has been removed from Part-B (Total Income).
- Corpus donation to other trust or institution chargeable as per Explanation 2 to section 11(1).
- Deduction u/s 10AA.
However, new point of Net tax payable on 115TD income including Interest u/s 115TE has been added under Part-B in Computation of tax liability on Total Income.
10. Some Other Points in Income Tax Return
- Under depreciation on Plant and Machinery, a new rate of 45% has been added.
- New ITR-1 and ITR-4 require passport details from resident persons having an Indian passport.
- Return in ITR-1 and ITR-4 cannot be filed by a person who owns a house property in joint-ownership.
- Under computation of Income, new section E is added i.e. Computation of Income from life insurance business referred to in section 115B.These details to be provided in form ITR-5 and ITR-6.
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The author of the above article is CA Rahul Gaur.
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