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Last Updated : Jun 01, 2020 10:47 PM IST | Source: Moneycontrol.com

New Income Tax filing rules: Government makes filing returns for high-value transactions mandatory, extends timelines

The Centre had earlier withdrawn two I-T returns (ITR-1 and ITR-4), which were notified in January, to allow for the changes due to COVID-19. It extended various timelines under the Income-tax Act, 1961, through the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020

The government has said that it is mandatory for assessees to file I-T returns for high value transactions such as deposits in current account worth over Rs 1 crore, electricity bill payment of Rs 1 lakh or more and spending on foreign travel of Rs 2 lakh and above, even if their income is below the taxable limit.

In a notification, the income tax department also revised the I-T return forms to allow assessees to avail benefits of various timeline extensions granted by the government following the COVID-19 pandemic.

The Central Board of Direct Taxes (CBDT) on May 30 notified Sahaj (ITR-1), Form ITR-2, Form ITR-3, Form Sugam (ITR-4), Form ITR-5, Form ITR-6, Form ITR-7 and Form ITR-V for the assessment year 2020-21 (income earned between April 1, 2019 to March 31, 2020).

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The new ITR forms also require taxpayers to furnish details of tax saving investments/donations made during June 2020 for the 2019-20 separately.

The Centre had earlier withdrawn two I-T returns (ITR-1 and ITR-4), which were notified in January, to allow for the changes due to COVID-19. It extended various timelines under the Income-tax Act, 1961, through the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020, extending the time for making investment or payments for claiming deduction under Chapter-VIA-B of the I-T Act that include Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim) and 80G (Donations) for the financial year 2019-20 to June 30, 2020.

Returns in ITR-1 Sahaj can be filed by an ordinarily resident individual whose total income does not exceed Rs 50 lakh, while Form ITR-4 Sugam is meant for resident individuals, HUFs and firms (other than LLP) having a total income of up to Rs 50 lakh and having presumptive income from business and profession.

While ITR-3 and 6 are filed by businesses, ITR-2 is filed by people having income from residential property; ITR-5 is filed by LLP and Association of Persons (AoP). ITR-7 is filed by persons in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes.
First Published on Jun 1, 2020 12:23 pm
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