Income Tax Return filing: What is new in the new ITR forms for AY 2020-21?

Income Tax Return filing: What is new in the new ITR forms for AY 2020-21?

The Central Board of Direct Taxes has recently notified the income tax returns for the AY 2020-21. The tax returns are in line with the Finance Act amendments for the FY 2019-20 and include relief measures announced due to COVID-19. For the FY 2019-20, the government had earlier provided relief by extending the time for making tax-saving investments until 30 June 2020.

The notified income tax return forms enable taxpayers to claim tax deductions for tax-saving investments, payments, donations and investments for capital gains exemption, made during the extended period until 30 June 2020. The income tax returns consist of a separate schedule (Schedule DI) requiring a taxpayer to specify the amount of the investment or expenditure in respect of which they wish to claim a deduction. The deduction is allowed within the aggregate eligible limits available for FY 2019-20 under the different provisions of the Income Tax Act.

The scope of filing income tax return has been expanded to include taxpayers who are individuals, Hindu Undivided Family (HUF) and partnership firms who are not otherwise required to file an income tax return. Such taxpayers should file a tax return if they meet any of the below criteria:

# Deposit of an aggregate amount which exceeds Rs 1 crore in one or more current accounts with a bank (including a co-operative bank).