Income Tax Return filing: New ITR forms for FY2019-20 – Know which one is for you

By Shailesh Kumar

Taxpayers should note that the due date for filing income tax returns (ITR) for FY 2019-20, which is usually July 31 or October 31, depending on the type of taxpayer, has been extended to November 30, 2020 for all classes of taxpayers. A taxpayer must also know the ITR form applicable to it, depending on status of the taxpayer, nature of income earned and threshold limit, whether taxpayer is a director or shareholder in a company, etc.

To kickstart the process of ITR filing for FY 2019-20, recently, the Central Board of Direct Taxes (CBDT) notified the new return forms for FY 2019-20. Seven forms, ITR-1 to ITR-7, have been prescribed for different types of taxpayers. Here we explain notable aspects of different ITR forms which taxpayers need to consider while filing ITRs.

Saral and Sahaj

The most simple form, ITR-1 (Sahaj) can be filed by an ordinarily resident individual whose total income does not exceed Rs 50 lakh, having income from salaries, one house property, other sources (interest, etc.), and agricultural income up to Rs 5,000. Individual taxpayers having income from business, profession, capital gains or more than one house property can not use ITR-1.

Another simple form ITR-4 (Sugam) is applicable for resident individuals, HUFs and firms (other than LLP) with total income of up to Rs 50 lakh and having income from small business or profession taxable under presumptive income provisions of Sections 44AD, 44ADA or 44AE of Income Tax Act, 1961. Taxpayers having income from capital gains cannot opt for ITR-4 as well.

Both these simple forms, viz. ITR-1 and ITR-4, which have minimum disclosure requirements and need small taxpayers to provide minimal details are also not applicable for an individual who is either director in a company or has invested in unlisted equity shares. ITR-2 is applicable for individuals and HUFs not having business income but not eligible for ITR 1 (Sahaj) whereas ITR-3 is applicable for individuals and HUFs having business income, but not eligible for ITR 4 (Sugam).

ITR5 and other forms

ITR-5 is required to be filed by all categories of taxpayers other than individuals and HUFs (for whom ITR-1 to ITR 4 is applicable), companies (for whom ITR-6 is applicable) or charitable trusts/ institutions (for whom ITR-7 applies). Thus, ITR-5 is applicable for partnership firms (other than those qualifying for ITR-4), LLPs, Association of Persons, Body of Individuals, etc., to whom no other form applies.

An important aspect of ITR forms for FY 2019-20 is that the ITR forms have been revised to incorporate the benefits of various timeline extensions granted by government due to Covid-19 and lockdown. Thus, in the newly notified ITR Forms, taxpayers can claim the deductions in respect of tax saving investments made between April 1 to June 30, 2020 for FY 2019-20, by mentioning necessary details in ‘Schedule – DI’.

Taxpayers having high value transactions such as deposit in current account of over Rs 1 crore, electricity bill payment of Rs 1 lakh or more and spending on foreign travel of Rs 2 lakh and above are now mandatorily required to file ITRs. However, it is pertinent to note that certain details such as passport number, details of employer and details of tenants in case of rented house property have been withdrawn from the newly notified forms, which were required in the forms earlier notified in January, this year.

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