ITR 1 and 4 notified by CBDT for A.Y. 2020-2021:

written by Income tax Expert | January 6, 2020

We have entered into a new year and the first notification issued by CBDT is to notify ITR 1 and ITR 4 for A.Y. 2020-21.

The ITR have been notified much earlier when compared to previous years, as in earlier year’s return would be notified by April and this time they have notified the same in January which clearly shows that CBDT is trying to speed up the things and even though forms have been notified it doesn’t mean that you can start downloading the utility of the return now they have just notified the PDF schema of form and not the utility and same would only be available after April.

Also issuing the forms this early doesn’t mean there aren’t any changes in them, there are few changes which are listed below:

  • If having Passport mention the Passport number in ITR.
  • In case of 44AD or 44ADA or 44AE now the assessee will be required to give a cash flow statement i.e. Opening Balance of Cash in Hand & Bank accounts and also will be required to give total amount Received in Cash during the year total Amount Deposited in bank during the year, Total amount of Cash Outflow out of cash Balance during the year, total amount of Withdrawal from Bank during the year and Closing Balance of cash in hand & Banks.
  • Now there will be No Need to provide figures of Unsecured Loans, Sundry Debtors, Sundry Creditors, amount of Closing Stock etc. as was required in earlier years while filing ITR 4.

The following people will not be eligible to file ITR 1 and ITR 4 as mentioned in seventh proviso to section 139(1) and rule 12 of Income Tax rules, 1962:

  • If incurred aggregate Expenses exceeding Rs. 2 lakh on Foreign Travel for self or for others.
  • If Deposited aggregate amount exceeding Rs. 1 Crore in one or more Current Bank A/c’s.
  • If incurred an expenditure of amount Exceeding Rs. 1 lakh on Electricity Consumption.
  • If any assessee owns house property in Co-Ownership then he will Not be eligible to file ITR 1 Sahaj or 4 Sugam.

The eligibility test would be carried out while filing ITR 4 at clause no. A21 where one need to answer for first three points mentioned above and they also need to mention the amount against each restriction if they tick it as yes. As far as ITR 1 is concerned same has just been mentioned at top of ITR 1 and one need to self assessee whether he is eligible for ITR 1 or not as there is no separate drop down to select eligibility.

You can download the notification from HERE.

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