ITR 1 to 7 have been notified by CBDT for AY 2021-22 or FY 2020-21

A few months back we had completed filing of ITR for FY 2019-20 and now CBDT has notified ITR for FY 2020-21.

It is important to note that just ITR forms has been notified and all are not available for filing at income tax website.

CBDT in it’s Press release has mentioned that no major changes have been made in the Income tax returns keeping in mind the ongoing pandemic and to reduce the compliance burden on assessee.

The relevant extract of Press release are as under:

“Keeping in view the ongoing crisis due to COVID pandemic and to facilitate the taxpayers, no significant change have been made to the ITR Forms in comparison to the last year’s ITR Forms. Only the bare minimum changes necessitated due to amendments in the Income-tax Act, 1961 have been made.

ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler Forms that cater to a large number of small and medium taxpayers. Sahaj can be filed by an individual having income upto Rs. 50 lakh and who receives income from salary, one house property / other sources (interest etc.).

Similarly, Sugam can be filed by individuals, Hindu Undivided Families (HUFs) and firms (other than Limited Liability Partnerships (LLPs)) having total income upto Rs. 50 lakh and income from business and profession computed under the presumptive taxation provisions.

Individuals and HUFs not having income from business or profession (and not eligible for filing Sahaj) can file ITR-2 while those having income from business or profession can file ITR Form 3. Persons other than individual, HUF and companies i.e. partnership firm, LLP etc. can file ITR Form 5. Companies can file ITR Form 6. Trusts, political parties, charitable institutions etc. claiming exempt income under the Act can file ITR-7.

There is no change in the manner of filing of ITR Forms as compared to last year.”

Although CBDT has mentioned that no major changes have been made but few of the changes apparent are as under:

1. A new option for section 115BAC have been provided in ITR form 1 to 4 which is for individuals. Section 115BAC was a new section showing new slab rates for individual. To read about section 115BAC in detail CLICK HERE.

2. Under Schedule VI-A the following line has been added: “Please note that the deduction in respect of the investment/ deposit/ payments for the period 01-04-2020 to 31-07-2020 cannot be claimed again, if already claimed in the AY 20-21.” Again this thing depends on self declaration of assessee as was the case last year.

3. In the following cases a person won’t be allowed to file ITR 1:

In cases where TDS has been deducted u/s 194N.

4. In the below mentioned cases a person won’t be allowed to file ITR 1 and 4:

In cases where person has income of the nature specified in clause (vi) of sub-section (2) of section 17 i.e. ESOP in startup on which tax is payable or deductible, as the case may be, under sub-section (2) of section 191 or sub-section (1C) of section 192;.”

To read full notification CLICK HERE.

If you want to file your Income Tax return with CA professionals CLICK HERE.