New ITR Forms for AY 2020-21 | What changed ?

While it is no more an important point to know which ITR form to be used while filing your ITR, consider this post for educational purpose. With the portals like EZTax.in that provides 100% Free ITR Filing, where the ITR Form is auto selected based on the facts, income given, taxpayer no longer need to know which ITR to be filed.

IT Department recently notified Income Tax Returns (ITR) Forms ITR1 & ITR4 for AY 2020-21 (that is for the income received during Apr 01st 2019 to Mar 31st 2020) with the changes from earlier years.

Main Changes

  1. Taxpayer cannot use ITR-1, ITR-4 in case
    1. An Individual taxpayer with more than one house property.
    2. Owners of a joint house property (more than 1 owner)
    3. Spent Rs. 2L on foreign travel, Rs. 1L on electricity during last FY
  2. Additional emphasis made to add house property address, tenant details including PAN, Aadhaar Number (where applicable).
  3. Passport Number must be mentioned if issued on the name of the Tax Payer.
  4. Minimum Financial particulars were requested.
  5. Opening, Closing Balances were requested to capture cash, bank positions for the business or profession.

Choose ITR-1

  1. For Individuals being a resident (other than not ordinarily resident) having a total income up to Rs. 50 Lakh
  2. having Income from Salaries, one house property (single ownership), interest income, Family pension income etc.
  3. Agricultural income up to Rs. 5000/-
  4. Not a 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”.

Choose ITR-4

  1. For Individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs.50 Lakh
  2. having one house property (single ownership)
  3. having income from business and profession which is computed under sections 44AD, 44ADA or 44AE or Interest Income, Family pension etc.
  4. Agricultural income up to Rs. 5000/-
  5. Not a 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”.

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