Important Income Tax Updates:
The Government has notified income tax return (ITR) forms for taxpayers for filing returns for assessment year AY 2020-21.
2. The Government has
notified income tax return
(ITR) forms for taxpayers
for filing returns for
assessment year AY 2020-
21.
Tax Prep
Services
3. Due date of all income tax
returns for AY 2020-21 has
been extended to November
30 from July 31 and October
31
Tax Prep
Services
4. Taxpayers including individuals,
Hindu undivided family,
professionals and businesses, will
be able to avail benefits of savings
or investments made between
April 1 and June 30, following the
extension timelines provided by
the finance ministry owing to
COVID 19 pandemic.
Tax Prep
Services
5. Taxpayers will have dedicated space
in each of the ITR forms - 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 – to describe investments of
expenditures made during the
quarter ended June 30, which will
get counted in deductions or
exemptions.
Tax Prep
Services
6. The government has
extended several timelines
under income tax by a
quarter from March 31, to
allow taxpayers to make
investments, payments or
donations for claiming
exemptions and deductions,
besides the roll over benefit
of capital gains.
Tax Prep
Services
7. The forms also seek details from
taxpayers that have paid over Rs 1
lakh in electricity bills in a year,
deposited Rs 1 crore in bank
account and if incurred Rs 2 lakh
expense on foreign travel, in forms
Sahaj ITR-1, Form ITR-2, Form ITR-
3 and Form Sugam (ITR-4).
Tax Prep
Services
8. In ITR-4, PAN number is made optional if
Aadhar number is provided.
In section 44AD, one new clause added as
the electronic mode in addition to electronic
clearance and reduced the presumptive
income from 8% to 6%.
Tax Prep
Services
9. The new ITR Forms 3, 5 and 6 seek details pertaining to
assessee’s choice of paying additional income tax in case of
non-repatriation of primary adjustment within the
prescribed time limit.
The ITR-V form or acknowledgement additionally seeks
disclosure of details pertaining dividend distribution tax
(DDT) and accreted income on Trust registration
cancellation and tax details thereon, experts added.
Tax Prep
Services
10. It shows the intention that
the government is putting all
efforts to curb the tax
leakages and also allowing
law-abiding taxpayers to
take benefit of spends and
investments made during
the difficult time even if they
are done after the
completion of the
Tax Prep
Services
11. "Taxpayers would need to be
careful of these new
disclosure requirements,
before filing their ITR and to
select an appropriate ITR
form"
Tax Prep
Services