The Central Board of Direct Taxes (CBDT) has notified Income Tax forms – ITR 1 and ITR 4 for A.Y. 2020-2021 well in advance. The said forms will be applicable for filing income tax returns for the period April 1, 2019 to March 31, 2020. The income tax department now wants to keep a watch on your foreign travel spends and electric bill payments
Here are Six things to know about changes in ITR forms from assessment year 2020-21
Following changes have been made In the forms as compared to previous year’s forms:
1. Passport details to be mandatorily provided in ITR-1 (if you have one).
2. ITR-1 cannot be used for filing in the following cases:
• if an individual has joint ownership in a house
• if an individual has incurred expenses of Rs. 2 Lakhs or more on foreign travel during the year
• if an individual has deposited Rs. 1 Crore or more in one or more current account
• if an individual has paid electricity bill of more than Rs. 1 Lakh during the year
3. Details about cash and bank transactions like opening balances, receipts/payments and closing balances to be mandatorily provided for all cases where 44AD, 44ADA and 44AE is applicable.
4. Declaration to be made in ITR-4 if the aggregate amount of cash deposit in one or more current account exceeds Rs. 1 Crore. Exact amount of deposit to be mentioned.
5. Declaration to be made in ITR-4 if the aggregate amount exceeding Rs. 2 Lakhs is spent on foreign travel. Exact amount of expenditure to be mentioned.
6. Declaration to be made in ITR-4 if the aggregate amount exceeding Rs. 1 Lakh is spent on the consumption of electricity. Exact amount of expenditure to be mentioned.