The 2 ITR forms notified by CBDT for the assessment year 2020-21 are ITR-1 Sahaj and ITR-4 Sugam. CBDT grants relaxation in eligibility conditions for filing of ITR-1 and ITR-4 for Assessment Year 2020-21.Here are the rolled back provisions released by the CBDT:

ITR-1 and ITR-4 form for AY 2020-21 is valid for individuals who:

1. has deposited an amount or aggregate of the amounts exceeding one crore rupees in one or more current accounts maintained with a banking company or a co-operative bank; or
2. has incurred expenditure of an amount or aggregate of the amounts exceeding two lakh rupees for himself or any other person for travel to a foreign country; or
3. has incurred expenditure of an amount or aggregate of the amounts exceeding one lakh rupees towards consumption of electricity; or
4. owns a house property in joint-ownership with two or more persons, and
5. meets the other conditions as prescribed in Note-1 & Note-2 .

New disclosures that taxpayers need to make in new ITR-1 Sahaj, 

ITR-4 Sugam forms:-

1. ITR-1 Sahaj

• An individual with a brought forward/carry forward loss under the head ‘Income from house property’ can no longer use ITR-1 to file his/her income tax returns.

• In case the house property is rented out, the taxpayer will have to provide the name and PAN or Aadhaar of the tenant in the ITR-1.

• A new disclosure has been added to Part A- General Information of ITR-1. Here, a taxpayer will have to disclose whether he/she has a valid Indian passport. If yes, he/she will have to provide the passport number.

• The “Nature of Employment” has been moved from Part A- General Information to B1 of Part B- Salary Schedule of ITR-1.

• A separate column has been introduced under ‘Income from other sources’ for deduction u/s 57(iv) – in case of interest received on compensation or enhanced compensation under section 56(2)(viii).

2. ITR-4 Sugam

1. A taxpayer who has a brought forward/carry forward loss from ‘Income from house property’ cannot use ITR-4 to file his income tax return for FY 2019-20 onwards.

2. In case the house property is rented out, the taxpayer will have to provide the name and PAN or Aadhaar of the tenant in the ITR-4.

3. A new disclosure has been added to Part A- General Information of ITR-1. Here, a taxpayer will have to disclose whether he/she has a valid Indian passport. If yes, he/she will have to provide the passport number.

4. In case ITR-4 is being filed by a representative, Aadhaar number of the representative is required to be provided in ITR-4 from FY 2019-20 onwards.

5. 5. The taxpayers using ITR-4 will also have to disclose the following additional details in Part A- General information:

– Whether the taxpayer is a partner of a firm? If yes, he will have to furnish the name and PAN of the firm.
– Details of partners of the firm such as name, address, percentage of share in the firm, PAN, aadhaar number, rate of interest on capital and remuneration paid/payable.

6. The “Nature of Employment” has been moved from the Part A- General Information to B1 of Part B- Salary Schedule of ITR-4.

7. The ‘Financial particulars of the business’ section of the ITR-4 have been replaced by “Particulars of cash and bank transactions relating to presumptive business”. Under this tab, the taxpayer will have to enter the opening balance of cash and bank (aggregate of all bank accounts), receipts during the year, and payments or withdrawals made in the previous year.

8. A separate column has been introduced under ‘Income from other sources’ for deduction u/s 57(iv) – in case of interest received on compensation or enhanced compensation under section 56(2)(viii).

       Other Conditions

        (Note-1) – Who can file ITR 1 Sahaj

This Return Form is for a resident individual whose total income for the assessment year 2020-21

includes:

• Income from Salary/ Pension is less than Rs 50Lacs,or
• Income from One House Property (excluding cases where loss is brought forward from previous years); or
• Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)
• Agricultural income up to Rs.5000.

Who cannot use ITR 1 Form

• Total income exceeding Rs 50 lakh
• Agricultural income exceeding Rs 5000
• If you have taxable capital gains
• If you have income from business or profession
• Having income from more than one house property
•  If you are a Director in a company
• If you have had investments in unlisted equity shares at any time during the financial year
• Owning assets (including financial interest in any entity) outside India) if you are a resident, including signing authority in any account located outside India
• If you are a resident not ordinarily resident (RNOR) and non-resident
• Having foreign assets or foreign income
• If you are assessable in respect of income of another person in respect of which tax is deducted in the hands of the other person.

(Note-2) – Who can file ITR 4 or Sugam

This Return Form is to be used by an individual or HUF, who is resident other than not ordinarily resident, or a Firm (other than LLP) which is a resident, whose total income for the assessment year 2020-21 does not exceed Rs.50 lakh and who has income under the following heads:-

• Income from business where such income is computed on presumptive basis under Section 44AD (i.e. Gross Turnover upto Rs. 2 crore) or Section 44AE (income from goods carriage upto ten vehicles); or
• Income from Profession where such income is computed on presumptive basis under Section 44ADA (i.e. Gross receipt upto Rs. 50 lakh); or
• Income from Salary/ Pension; or
• Income from One House Property; or
• Income from Other Sources.

          Who cannot use ITR 4 Form

• If your total income exceeds Rs 50 lakh
• Having income from more than one house property
• If you have any brought forward loss or loss to be carried forward under any head of income
• Owning any foreign asset
• If you have signing authority in any account located outside India
•  Having income from any source outside India
• If you are a Director in a company
• If you have had investments in unlisted equity shares at any time during the financial year
• Being a resident not ordinarily resident (RNOR) and non-resident
• Having foreign assets or foreign income
• If you are assessable in respect of income of another person in respect of which tax is deducted in the hands of the other person.