The Central Board of Direct Taxes (CBDT) has notified two Income Tax return (ITR) forms for the assessment year of 2020-21. The income earned during the financial year 2019-20 has to be assessed in the assessment year 2020-21.
In exercise of the powers conferred by section 139 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes has come out with Income-tax (1st Amendment) Rules, 2020, which shall come into force with effect from April 1, 2020.
ITR 1-Sahaj and ITR 4-Sugam have been notified by the government. The ITR 1-Sahaj 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 (single ownership), interest income, Family pension income etc. and agricultural income up to Rs.5,000. However, it is not for an individual who is either Director in a company or has invested in unlisted equity shares or has any brought forward / carry forward loss under the head ‘Income from House Property’ or has to furnish return under 7th provison to section 139(1) of the Income Tax Act.
ITR 4-Sugam is for Individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs.50 lakh, one house property (single ownership), having income from business and profession which is computed under sections 44AD, 44ADA or 44AE or Interest Income, Family pension etc. and agricultural income up to Rs.5,000. However, it is not for an individual who is either Director in a company or has invested in unlisted equity shares or has any brought forward / carry forward loss under the head ‘Income from House Property’.
For every assessment year, the last date for filing tax returns is July 31, unless it is extended. If one misses the deadline, and if there is a tax liability, one will have to file belated returns and pay the taxes along with simple interest of 1 per cent per month on the outstanding due, calculated from the July 31 deadline.
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Source: Financial Express
