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The income tax department updates the ITR forms. What are the changes made this year?
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The income tax department made quite a few changes in the new ITR forms in the year 2020 amid the ongoing Covid-19 situation.

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The Income Tax department (1) released the updated ITR forms for the financial year 2019-20 (the assessment year 2020-21). The ministry of finance issued ITR 1,2,3,4,5, 6, and 7 forms. 

As we know, the income tax department withdrew the ITR from 1 through 4 to make some updates and changes because of the COVID-19 pandemic. Now, the taxpayers should calculate their tax liability for the current financial year and maximize their Section 80C benefits. 

Know which ITR form you come under:

ITR 1: This form, also known as Sahaj, is made for individuals whose annual salary is up to ₹50 lakhs. 

ITR 2: This is for the individuals not having any extra income from gains of business professions. 

ITR 3: For HUFs not having any income source from the profits of business professions. 

ITR 4: This form is for individuals whose annual salary is up to ₹50 Lakhs and also has extra income from the profits of the business profession. This is also applicable for individuals who invested in equity shares in a specific company. 

ITR 5: This is applicable for individuals, HURs, and companies filing the ITR 7 form. 

ITR 6: For companies not included under section 11.

ITR 7: For individuals and companies required to furnish under section 139(4A),(4B),(4C), or (4D).

 

Changes and noticeable updates in the ITR forms

  1. If an individual has a taxable income through domestic companies, then he/she isn’t eligible to file ITR 1. 
  2. Those having joint ownership of property not eligible to file ITR 1 and ITR 4.
  3. In the wake of the Covid-19 pandemic, the income tax department allowed taxpayers to make some exceptions until June 30th, 2020.

Nirmala Sitharaman recently extended the last date to file for forms to November 30th. This is done due to the lockdown imposed. 

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Pratap is an avid reader and he wishes to give back the community something in return. He is currently pursuing Engineering in the field of Computer Science in Bengaluru. He has a genuine passion for writing and spreading it to everyone. He has a thirst for knowledge and always seeking it out and aiming to be a better version of himself.

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Pratap Simha
Pratap Simha
Pratap is an avid reader and he wishes to give back the community something in return. He is currently pursuing Engineering in the field of Computer Science in Bengaluru. He has a genuine passion for writing and spreading it to everyone. He has a thirst for knowledge and always seeking it out and aiming to be a better version of himself.

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