Amendments in Forms of Income Tax Return

Income Tax Returns, usually called at ITR is an income form in which the taxpayers submit details about his income earned along with the tax applicable during each financial year to the Income Tax Department.  To do so, the department has notified 7 ITR forms i.e. ITR-1, ITR-2, ITR-3, ITR-4, ITR 5, ITR-6 and ITR-7 till date.

Recently, on 3rd January, 2020 the legislature has made a few amendments in Forms ITR-1 and ITR-4, which are as follows:

-Amendments in form ITR-1

  • Individual taxpayers who own a house jointly and paid Rs 1 lac in electricity bills in a year cannot file ITR-1
  • Individual taxpayers who have spent Rs 2 lacs on foreign travel cannot file their annual income tax returns using the simple ITR-1 form. Those not falling under this category will have to provide passport number while filing ITR-1.
  • Returns in ITR-1 can be filed by an ordinary resident individual whose total income does not exceed Rs 50 lacs.
  • ITR-1 form is not valid for those individuals who have deposited more than Rs 1 crore in bank account.
  • ITR-1 now requires detailed TAN details of the employer.
  • If the individual gives his property on rent, then the aadhaar details and pan card details of the tenant are to be provided.
  • Complete address of the house is to be provided. It does not matter whether the house is self occupied, let out or deemed to be let out.
  • ITR – 1 now requires detail of unrealised rent.

– Amendments in Form ITR-4

  • If an individual owns a house jointly with someone else, then ITR-4 cannot be filed.
  • Passport number is to be provided while filing ITR-4.
  • ITR-4 seeks details of foreign travel expenditure over Rs. 2 lacs.
  • It also seeks the details of electricity bill over Rs. 1 lac.

The individuals are therefore, advised to keep these amendments in mind while filing their ITR’s.

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