KEY TAKEAWAYS – NEW INCOME TAX RETURNS FOR AY 2020-21

Reference: Central Board of Indirect Tax and Customs

ITR 1 = SAHAJ :

1. Not applicable to Individual who owns residential property in joint ownership with two or more persons. This is also applicable to ITR 4.
2. Indian Passport holder is required to quote Passport Number. This is also applicable to ITR 4.
3. Not applicable to Search Related returns.
4. Requirement to furnish details of Employer expanded. This is also applicable to ITR 4.
5. Allows information to be furnished in case of more than one employer during the year under. This is also applicable to ITR 4.
6. In case of rental income, address of house property + tenant details, including Aadhar in lieu of PAN + unrealized rent details are to be furnished. This is also applicable to ITR 4.
7. Disclosure for certain deductions under Chapter VI A like 80CCC, 80CCD(1), 80CCD(1B), 80CCD(2), 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80GG, 80GGC, 80U is to be made separately.
8. Not applicable to persons who have entered into high value financial transactions such as :
   • Deposit of more than 1 crore in one or more current account with bank or co-operative bank.
   • Having incurred more than 2 lac for own or any other person for travel to foreign country.
   • Having incurred more than 1 lac towards electricity bill
   • Any other conditions as may be prescribed.
9. Person having income below 5 lac is also now required to file return of income electronically. However, the same is not applicable to Super Senior Citizens. This is also applicable to ITR 4.
10. Persons earning interest on compensation / enhanced compensation are eligible for 50% deduction u/s 57(iv). Now onwards, Gross Amount of Interest and Deduction claimed is required to be disclosed separately. This is also applicable to ITR 4.

ITR 4 = SUGAM :

1. Applicable to Persons who have entered into high value financial transactions such as :
   • Deposit of more than 1 crore in one or more current account with bank or co-operative bank.
   • Having incurred more than 2 lac for own or any other person for travel to foreign country.
   • Having incurred more than 1 lac towards electricity bill
   • Any other conditions as may be prescribed.
2. If Individual happens to be Partner of a Firm, then details of Partnership Firm such as Name and PAN are to be furnished.
3. Firms eligible to file this return have to details of Partners such as :
   • Name and Address
   • Share of Profit / Loss
   • PAN
   • Aadhar / Enrollment Number
   • Interest Rate on Capital
   • Remuneration
4. Person opting for Presumptive Taxation u/s 44AD, 44ADA or 44AE have to furnish opening and closing balance of cash and bank in addition to amount of receipt and payment through cash / bank.