The Central Board of Direct Taxes (CBDT) has recently notified income tax return (ITR) forms for the assessment year 2021-22 (the financial year 2020-21). Considering the crisis due to the COVID pandemic, the CBDT said that it has not changed the ITR forms significantly. Most of the new ITR forms changes are only consequential to the amendments made by the Finance Act, 2020 to the Income-tax Act.
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In view of this, let’s take a look at the consequential changes in the new ITR forms:
ITR – 1 cannot be filed in case of deferment of tax on ESOPs
The ITR-1 form specifies that it cannot be used by an individual for whom income tax is deferred on ESOPs.
According to Naveen Wadhwa, DGM, Taxmann, the Finance Act, 2020, the Finance Bill, 2020 has allowed deferring the payment or deduction of tax on ESOPs allotted by an eligible start-up referred under Section 80-IAC.
Also read: Income tax benefits for senior citizens
ITR – 1 cannot be filed in case tax has been deducted under Section 194N
Section 194N provides that every banking company (including any bank or banking institution), co-operative bank, or a post-office, which is responsible for payment of cash to a person, from one or more accounts maintained by him/her, will be required to deduct tax under this provision. Tax under this provision is required to be deducted if the amount of cash withdrawn during the year exceeds Rs 20 lakh in case of certain non-filers of return and Rs 1 crore in other cases.
Rule 12 of the income tax rules have been amended to restrict an assessee, in whose case tax has been deducted under this provision, from furnishing return of income in ITR–1.
Here are the key things to know about Income Tax Return (ITR) forms for the assessment year 2021-22:
ITR 1, also known as Sahaj, is available for individuals who are residents having total income up to Rs 50 lakh, having income from salaries, one house property, other sources (interest etc.), and agricultural income up to Rs 5,000.
ITR-2 is available for individuals and HUFs (Hindu Undivided Families) not carrying out business or profession under any proprietorship.
ITR-3 is available for individuals and HUFs having income from profits and gains in business or profession.
ITR-4, also known as Sugam, is available for Individuals, HUFs and firms (other than LLP) being a resident having a total income up to Rs 50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE under Income Tax Act.
ITR-5 is available for persons other than an individual, HUF, company and person filing Form ITR-7.
ITR-6 is available for companies other than companies claiming exemption under section 11 of the Income Tax Act.
ITR-7 is available for persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only under Income Tax Act.
(Edited by : Ajay Vaishnav)
First Published: Apr 5, 2021 6:41 PM IST
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