The revenue tax department now wants to know more about your earnings.
The income tax department also wants to know about not only your revenues and savings but also your expenditures in new forms of income tax return (ITR).Although the finance ministry has loosened eligibility conditions for filing ITR-1 and ITR-4 forms, the new ITR forms that were notified last week have not made any changes. This period, the changes are major as the public is searching for more details from the government.
Unlike before, on April 1st, you will be able to submit your ITR yourself as the income tax department wants to ensure that the e-filing facility for filing the return for assessment year (AY) 2020-21 is accessible one day after the end of the financial year.
Who can fill ITR-1 form:
ITR-1, also known as Sahaj, is mainly for people who receive up to a maximum of 50 lakh per year. This type of ITR can also be used by those with household income, interest income, family pension income, etc .
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The ITR-1 type, though, is not intended for persons who are either a director in a business or have invested in unlisted equity securities or taken forward any damages under the heading ' House Property Benefit.' The income tax department has done away with the recently introduced provision that required high-spenders to file ITR-4 on energy and foreign travel.
Who can fill ITR-4 form:
ITR-4, also known as Sugam, is intended for persons, HUFs and businesses (other than LLP) with a total income of up to approximately 50 lakh.
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10 things to know about the new ITR forms:
Up to now, ITR filing only required PAN and Aadhaar numbers which are interlinked. But now both ITR-1 and ITR-4 forms require that you declare your passport number as well, if you own one.
The current rules do not allow filing in ITR-1 in response to note u / s when return is submitted. 153A or 153C (i.e. the search-related evaluation), said Shailesh Kumar, Ceo, Nangia Andersen Consulting.
The new forms request full workplace information i.e. TAN, Workplace character, address.
You will have the right to include several rows for the aggregate compensation in the case of more than one employer during the financial year. Also, the ITR-1 type specifies that u/s be withheld from certain allowances. 10 The overall gross salary is included.
You will now need to send address in ITR forms of any house property you possess. The new form seeks tenant details in case of renting out land, i.e. name, PAN or Aadhaar number. You will also need to report the amount of rent that is not realizable.
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The updated ITR-1 form includes independent declaration of deductions in compliance with Sections 80CCC, 80CCD(1B), 80CCD(2), 80DD, 80DDB, 80E, 80EEE, 80EEE, 80EEB, 80GG, 80GGC and 80U.
ITR-4 type would also like to ask if the taxpayer has expended more than 2 lakh on foreign travel. Shailesh Kumar, an income tax specialist, said the latest reports would make it easier for regulators to track if their costs are proportionate to the declared revenue. "The new ITR forms seek additional taxpayer details and disclosures in a bid to plug the tax leaks.
Anyone filling out ITR-4 forms will need to state that, during the financial year, they deposited more than 1 crore in their current account.
You will also need to report specifics of your electric bill in the ITR-4 form if you charged more than 1 lakh during the year as charges for electricity consumption. "With the use of artificial intelligence, the tax department will be able to map the taxpayer's declared income through sumptuous spending on foreign travel or energy and automatically pick the evaluation cases if the profile is not matched.
For partnership firms that submit ITR-4 form, details of the partnership firm (name and PAN), partner details such as remuneration paid, interest rate on capital, etc. should be provided.
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