The income tax department now wants to keep a watch on your foreign travel spends and electric bill payments
Here are five things to know about changes in ITR forms from assessment year 2020-21
NEW DELHI :
Before filing income tax returns (ITR) from the next financial year, you will need not only details of your income and investments but also other details related to passport, foreign trips and electricity bills as the income tax department has changed ITR forms from assessment year 2020-21. The income tax department issues seven forms from ITR-1 to ITR-7 for ITR filing each year. This time, well before the beginning of the new new financial year from April, the income tax department has released ITR 1 (Sahaj) and ITR 4 (Sugam) forms. Other forms are expected to be released soon.
1) From next year, ITR-1 form is not valid for those individuals who have deposited more than ₹1 crore in a current bank account or have spent ₹2 lakh on foreign travel or ₹1 lakh on electric bills in the relevant financial year.
2) ITR-1 form can be filed by an ordinarily resident individual whose total income is not more than ₹50 lakh, having income from salaries, one house property (single ownership), interest income, family pension income etc. ITR-4 form is meant for resident individuals, HUFs and firms (other than LLP) having a total income of up to ₹50 lakh and having presumptive income from business and profession or interest income, etc.
3) If you own a house jointly with someone else, then you can neither use ITR 1 nor ITR 4 form to file ITR.
4) Both ITR 1 and ITR 4 forms require you to share your passport number if you have one.
5) ITR 4 form seeks details of your expenditure of ₹2 lakh in foreign travel. "Have you incurred expenditure of an amount or aggregate of amount exceeding Rs. 2 lakhs for travel to a foreign country for yourself or for any other person," asks ITR 4 form and asks you to specify the amount you spent. ITR 4 form also wants to know whether you spent more than ₹1 lakh during the year on electric bills.