SYNOPSIS OF ALL THE CHANGES IN ITR- 1 to 7. Also know the changes in the ITR-V mechanisms in the new ITR filing Rules
Change in the income tax returns has become an annual feature. This year, there were two occasions when the changes were effected. First by Notification No. 01/2020 Dated 03.01.2020 and thereafter by Notification No. 31/2020 Dated 29.05.2020. With second notification, forms notified earlier were withdrawn. Before having a look at the major changes effected, taxpayers may note that now if the return is filed without DSC or not verified by EVC & if ITR-V is received by CPC, Bengaluru within 120 days then the date of receipt would be treated as date of filing income tax return for all the purposes. It means that the ITR-V must be received by CVC within 120 days so as to avoid other consequences like late filing fee, carry forward of losses etc.
Besides this, one more important change is effected is in ITR-V (Ack. form) mechanism for AY 2020-21. After submission of ITR form, ITR will be displayed with a watermark “Not Verified” until the same is verified either electronically by EVC or by sending the same via post after manual signing. However, if ITR is uploaded with DSC then the final ITR-V without any watermark will be generated. The unverified acknowledgement is titled as ’INDIAN INCOME TAX RETURN VERIFICATION FORM’ whereas the final ITR-V is titled as ‘INDIAN INCOME TAX RETURN ACKNOWLEDGEMENT’. This has been done to alert the taxpayer that the e-filed ITR form needs to be verified. The unverified form ITR-V will not contain any income, deduction and tax details. The new and changed ITR-V will only contain the basic information of the taxpayer Name and PAN and e-filing data like ITR Form No., e-Filing Acknowledgement Number, Filing section. Apart from these basic info, the form will have only the ‘Verification’ part. After verification, unverified ITR-V will get changed & can be downloaded. In short, taxpayer will not get the final ITR acknowledgement until the same is verified.
To some extent, the new system will take care of the situations prevailing earlier wherein the Returns were invalidated due to non verification or due to non receipt of ITR V at CPC, Bengaluru.
Let us now have a look at other changes in the ITR forms:
CHANGES IN ITR – 1
– SAHAJ
– for AY 2020-21
| S.NO. | Changes in ITR-1 (SAHAJ) | CHANGES IN FOMRS |
| 1 | Changes in Nature of employment
|
At ‘PART A
GENERAL INFORMATION’,
“Nature of employment” has been further bifurcated from Govt., PSU, Pensioners, Others in AY 2019-20 to the followings for AY 2020-21-
Central Govt., State Govt., Public Sector Undertaking, Pensioners, Others, Not Applicable (e.g. Family Pension etc.)
In short, Government employees details further expanded.
|
| 2 | 7th proviso to section 139(1)
[ High Value Transactions reporting, as required under Seventh proviso to section 139(1)] |
Information is required to be given for-
Exclusive reporting is required for-
(i) If amounts of deposit exceeds Rs. 1 Crore in one or more current accounts, then report the actual amount of deposit.
(ii) If expenditure on travel to a foreign country for self or for any other person exceeds Rs. 2 Lakh, then report the actual amount of such expenditure.
(iii) If incurred more than Rs. 1 lakh on electricity consumption, then report the actual amount of such consumption.
It is required to be given if any of the replies is in affirmative i.e.. if any of the conditions is satisfied. This information is required only if the taxpayer is filing ITR-1 under 7th proviso to section 139(1) but otherwise not required to furnish return of income |
| 3 | Details of Employer removed | The Details of Employer for reporting Salary income as well as the requirement to Add multiple rows for Gross Salary in case of more than one employer, as notified by the Notification 1/2020, has been removed.
Hence, the section of ‘Salary/Pension’ remains unchanged from AY 2019-20. |
| 4 | Details of Tenant removed | The Details of tenant in case of Let out, Name and PAN, or Aadhaar of tenant for reporting rental income as notified by the Notification 1/2020 has been removed. In short, the section of ‘House Property’ remains unchanged from AY 2019-20. |
| 5 | Deduction u/s. 57(iv) removed | The Deduction u/s. 57(iv) [in case of interest received u/s. 56(2)(viii)] in the section ‘Income from Other Sources’ as notified by the Notification 1/2020 has been removed. In short, the section of ‘Income from Other Sources’ remains unchanged from AY 2019-20. |
| 7 | Multiple bank accounts can be selected for refund credit | In preceding AY 2019-20, only one bank account was allowed to be selected for refund credit.
In AY 2020-21, multiple bank accounts are allowed to be selected for getting the refund credit. In case multiple accounts are selected for refund credit, then refund will be credited to one of the account decided by CPC after processing the return. |
| 8 | Schedule DI – Details of Investment | A new ‘Schedule DI – Details of Investment’ is added to report investment/expenditure made between 01.04.2020 to 30.06.2020. It is commensurates with the time extension granted by Taxation and Other Laws (Relaxation of certain provisions) Ordinance, 2020 for the purpose of claiming deduction for AY 2020-21 for investments, etc made under chapter VI-A till 30.06.2020. |
| 9 | No Passport details required | The details of passport Number as notified by the Notification 1/2020 has been removed. |
CHANGES IN ITR – 2
– for AY 2020-21
| S.NO. | Changes in ITR-2 | CHANGES IN FOMRS |
| 1 | Changes in Nature of employment
|
At ‘PART A
GENERAL INFORMATION’,
“Nature of employment” has been further bifurcated from Govt., PSU, Pensioners, Others in AY 2019-20 to the followings for AY 2020-21-
Central Govt., State Govt., Public Sector Undertaking, Pensioners, Others, Not Applicable (e.g. Family Pension etc.)
In short, Government employees details further expanded.
|
| 2 | 7th proviso to section 139(1)
[ High Value Transactions eporting, as required under Seventh proviso to section 139(1)] |
Information is required to be given for-
Exclusive reporting is required for-
(i) If amounts of deposit exceeds Rs. 1 Crore in one or more current accounts, then report the actual amount of deposit.
(ii) If expenditure on travel to a foreign country for self or for any other person exceeds Rs. 2 Lakh, then report the actual amount of such expenditure.
(iii) If incurred more than Rs. 1 lakh on electricity consumption, then report the actual amount of such consumption.
It is required to be given if any of the replies is in affirmative i.e.. if any of the conditions is satisfied. This information is required only if the taxpayer is filing ITR-1 under 7th proviso to section 139(1) but otherwise not required to furnish return of income |
| 3 | Details of Employer removed | The Details of Employer for reporting Salary income as well as the requirement to Add multiple rows for Gross Salary in case of more than one employer, as notified by the Notification 1/2020, has been removed.
Hence, the section of ‘Salary/Pension’ remains unchanged from AY 2019-20. |
| 4 | Details of Tenant removed | The Details of tenant in case of Let out, Name and PAN, or Aadhaar of tenant for reporting rental income as notified by the Notification 1/2020 has been removed. In short, the section of ‘House Property’ remains unchanged from AY 2019-20. |
| 5 | Deduction u/s. 57(iv) removed | The Deduction u/s. 57(iv) [in case of interest received u/s. 56(2)(viii)] in the section ‘Income from Other Sources’ as notified by the Notification 1/2020 has been removed. In short, the section of ‘Income from Other Sources’ remains unchanged from AY 2019-20. |
| 7 | Multiple bank accounts can be selected for refund credit | In preceding AY 2019-20, only one bank account was allowed to be selected for refund credit.
In AY 2020-21, multiple bank accounts are allowed to be selected for getting the refund credit. In case multiple accounts are selected for refund credit, then refund will be credited to one of the account decided by CPC after processing the return. |
| 8 | Schedule DI – Details of Investment | A new ‘Schedule DI – Details of Investment’ is added to report investment/expenditure made between 01.04.2020 to 30.06.2020. It is commensurates with the time extension granted by Taxation and Other Laws (Relaxation of certain provisions) Ordinance, 2020 for the purpose of claiming deduction for AY 2020-21 for investments, etc made under chapter VI-A till 30.06.2020. |
| 9 | No Passport details required | The details of passport Number as notified by the Notification 1/2020 has been removed. |
| 10 | Change in Details of Companies | In case of details of companies where the taxpayer is a director, the column ‘Type of Company’ is removed.
Similarly, the same column is removed for details of companies where unlisted equity shares were held by the taxpayer. |
| 11 | Changes in Nature of employment
|
In ‘Schedule S-Details of Income from Salary’, Nature of employment was further bifurcated in Govt., PSU, Pensioners, Others in AY 2019-20.
For AY 2020-21, such bifurcation will be provided in drop down utility and no further details provided. It appears that it will contain the same bifurcation as given in ITR-1 (Sahaj). |
| 12 | Schedule 112A inserted to report individual scrip wise details | ‘Schedule 112A: From sale of equity share in a company or unit of equity oriented fund or unit of a business trust on which STT is paid under section 112A’ is inserted and notified in this year’s ITR-2 to report individual scrip wise details on long term shares which was earlier exempt from tax and eligible for grandfathering.
Earlier, this was introduced in the later version e-filing utility for AY 2019-20, but made optional. |
| 13 | 115AD(1)(b)(iii) proviso inserted to report individual scrip wise details for Non-resident | New Schedule ‘115AD(1)(b)(iii) proviso: For NON-RESIDENTS – From sale of equity share in a company or unit of equity oriented fund or unit of a business trust on which STT is paid under section 112A’ is inserted. |
CHANGES IN ITR – 3
– for AY 2020-21
| S.NO. | Changes in ITR-3 | CHANGES IN FOMRS |
| 1 | Changes in Nature of employment
|
At ‘PART A
GENERAL INFORMATION’,
“Nature of employment” has been further bifurcated from Govt., PSU, Pensioners, Others in AY 2019-20 to the followings for AY 2020-21-
Central Govt., State Govt., Public Sector Undertaking, Pensioners, Others, Not Applicable (e.g. Family Pension etc.)
In short, Government employees details further expanded.
|
| 2 | 7th proviso to section 139(1)
[ High Value Transactions eporting, as required under Seventh proviso to section 139(1)] |
Information is required to be given for-
Exclusive reporting is required for-
(i) If amounts of deposit exceeds Rs. 1 Crore in one or more current accounts, then report the actual amount of deposit.
(ii) If expenditure on travel to a foreign country for self or for any other person exceeds Rs. 2 Lakh, then report the actual amount of such expenditure.
(iii) If incurred more than Rs. 1 lakh on electricity consumption, then report the actual amount of such consumption.
It is required to be given if any of the replies is in affirmative i.e.. if any of the conditions is satisfied. This information is required only if the taxpayer is filing ITR-1 under 7th proviso to section 139(1) but otherwise not required to furnish return of income |
| 3 | Details of Employer removed | The Details of Employer for reporting Salary income as well as the requirement to Add multiple rows for Gross Salary in case of more than one employer, as notified by the Notification 1/2020, has been removed.
Hence, the section of ‘Salary/Pension’ remains unchanged from AY 2019-20. |
| 4 | Details of Tenant removed | The Details of tenant in case of Let out, Name and PAN, or Aadhaar of tenant for reporting rental income as notified by the Notification 1/2020 has been removed. In short, the section of ‘House Property’ remains unchanged from AY 2019-20. |
| 5 | Deduction u/s. 57(iv) removed | The Deduction u/s. 57(iv) [in case of interest received u/s. 56(2)(viii)] in the section ‘Income from Other Sources’ as notified by the Notification 1/2020 has been removed. In short, the section of ‘Income from Other Sources’ remains unchanged from AY 2019-20. |
| 7 | Multiple bank accounts can be selected for refund credit | In preceding AY 2019-20, only one bank account was allowed to be selected for refund credit.
In AY 2020-21, multiple bank accounts are allowed to be selected for getting the refund credit. In case multiple accounts are selected for refund credit, then refund will be credited to one of the account decided by CPC after processing the return. |
| 8 | Schedule DI – Details of Investment | A new ‘Schedule DI – Details of Investment’ is added to report investment/expenditure made between 01.04.2020 to 30.06.2020. It is commensurates with the time extension granted by Taxation and Other Laws (Relaxation of certain provisions) Ordinance, 2020 for the purpose of claiming deduction for AY 2020-21 for investments, etc made under chapter VI-A till 30.06.2020. |
| 9 | No Passport details required | The details of passport Number as notified by the Notification 1/2020 has been removed. |
| 10 | Change in Details of Companies | In case of details of companies where the taxpayer is a director, the column ‘Type of Company’ is removed.
Similarly, the same column is removed for details of companies where unlisted equity shares were held by the taxpayer. |
| 11 | Changes in Nature of employment
|
In ‘Schedule S-Details of Income from Salary’, Nature of employment was further bifurcated in Govt., PSU, Pensioners, Others in AY 2019-20.
For AY 2020-21, such bifurcation will be provided in drop down utility and no further details provided. It appears that it will contain the same bifurcation as given in ITR-1 (Sahaj). |
| 12 | Schedule 112A inserted to report individual scrip wise details | ‘Schedule 112A: From sale of equity share in a company or unit of equity oriented fund or unit of a business trust on which STT is paid under section 112A’ is inserted and notified in this year’s ITR-2 to report individual scrip wise details on long term shares which was earlier exempt from tax and eligible for grandfathering.
Earlier, this was introduced in the later version e-filing utility for AY 2019-20, but made optional. |
| 13 | 115AD(1)(b)(iii) proviso inserted to report individual scrip wise details for Non-resident | New Schedule ‘115AD(1)(b)(iii) proviso: For NON-RESIDENTS – From sale of equity share in a company or unit of equity oriented fund or unit of a business trust on which STT is paid under section 112A’ is inserted. |
CHANGES IN ITR – 4
– SUGAM
– for AY 2020-21
| S.NO. | Changes in ITR-4 | CHANGES IN FOMRS |
| 1 | Changes in Nature of employment
|
At ‘PART A
GENERAL INFORMATION’,
“Nature of employment” has been further bifurcated from Govt., PSU, Pensioners, Others in AY 2019-20 to the followings for AY 2020-21-
Central Govt., State Govt., Public Sector Undertaking, Pensioners, Others, Not Applicable (e.g. Family Pension etc.)
In short, Government employees details further expanded.
|
| 2 | 7th proviso to section 139(1)
[ High Value Transactions eporting, as required under Seventh proviso to section 139(1)] |
Information is required to be given for- Exclusive reporting is required for- (i) If amounts of deposit exceeds Rs. 1 Crore in one or more current accounts, then report the actual amount of deposit. (ii) If expenditure on travel to a foreign country for self or for any other person exceeds Rs. 2 Lakh, then report the actual amount of such expenditure.
(iii) If incurred more than Rs. 1 lakh on electricity consumption, then report the actual amount of such consumption.
It is required to be given if any of the replies is in affirmative i.e.. if any of the conditions is satisfied. This information is required only if the taxpayer is filing ITR-1 under 7th proviso to section 139(1) but otherwise not required to furnish return of income |
| 3 | Details of Employer removed | The Details of Employer for reporting Salary income as well as the requirement to Add multiple rows for Gross Salary in case of more than one employer, as notified by the Notification 1/2020, has been removed.
Hence, the section of ‘Salary/Pension’ remains unchanged from AY 2019-20. |
| 4 | Details of Tenant removed | The Details of tenant in case of Let out, Name and PAN, or Aadhaar of tenant for reporting rental income as notified by the Notification 1/2020 has been removed. In short, the section of ‘House Property’ remains unchanged from AY 2019-20. |
| 5 | Deduction u/s. 57(iv) removed | The Deduction u/s. 57(iv) [in case of interest received u/s. 56(2)(viii)] in the section ‘Income from Other Sources’ as notified by the Notification 1/2020 has been removed. In short, the section of ‘Income from Other Sources’ remains unchanged from AY 2019-20. |
| 7 | Multiple bank accounts can be selected for refund credit | In preceding AY 2019-20, only one bank account was allowed to be selected for refund credit.
In AY 2020-21, multiple bank accounts are allowed to be selected for getting the refund credit. In case multiple accounts are selected for refund credit, then refund will be credited to one of the account decided by CPC after processing the return. |
| 8 | Schedule DI – Details of Investment | A new ‘Schedule DI – Details of Investment’ is added to report investment/expenditure made between 01.04.2020 to 30.06.2020. It is commensurates with the time extension granted by Taxation and Other Laws (Relaxation of certain provisions) Ordinance, 2020 for the purpose of claiming deduction for AY 2020-21 for investments, etc made under chapter VI-A till 30.06.2020. |
| 9 | No Passport details required | The details of passport Number as notified by the Notification 1/2020 has been removed. |
| 10 | Columns of Goods Carriage details restored | The Columns of Goods Carriage details section titled ‘COMPUTATION OF PRESUMPTIVE INCOME FROM GOODS CARRIAGES UNDER SECTION 44AE’ has been restored to preceding AY 2019-20.
Changes in the columns as notified by the Notification 1/2020 have been removed. |
| 10 | Financial particulars of the business restored and Summary of Cash and Bank account reporting column removed | Notification No. 1/2020 had removed the ‘Financial particulars of the business’ and instead a new column’ and introduced a new column to report ‘Summary of Cash and Bank account’ to include opening balance, receipts and payments during the year, and the closing balance as on the end of the financial year.
The requirement of reporting of summarized cash and bank transactions has been removed now and the ‘Financial particulars of the business’ as was applicable for AY 2019-20 was restored. |
CHANGES IN ITR – 5
– for AY 2020-21
| S.NO. | Changes in ITR-5 | CHANGES IN FOMRS |
| 1 | 7th proviso to section 139(1)
[ High Value Transactions eporting, as required under Seventh proviso to section 139(1)] |
Information is required to be given for-
Exclusive reporting is required for-
(i) If amounts of deposit exceeds Rs. 1 Crore in one or more current accounts, then report the actual amount of deposit.
(ii) If expenditure on travel to a foreign country for self or for any other person exceeds Rs. 2 Lakh, then report the actual amount of such expenditure.
(iii) If incurred more than Rs. 1 lakh on electricity consumption, then report the actual amount of such consumption.
It is required to be given if any of the replies is in affirmative i.e.. if any of the conditions is satisfied. This information is required only if the taxpayer is filing ITR-1 under 7th proviso to section 139(1) but otherwise not required to furnish return of income |
| 2 | Details of Tenant removed | The Details of tenant in case of Let out, Name and PAN, or Aadhaar of tenant for reporting rental income as notified by the Notification 1/2020 has been removed. In short, the section of ‘House Property’ remains unchanged from AY 2019-20. |
| 3 | Deduction u/s. 57(iv) removed | The Deduction u/s. 57(iv) [in case of interest received u/s. 56(2)(viii)] in the section ‘Income from Other Sources’ as notified by the Notification 1/2020 has been removed. In short, the section of ‘Income from Other Sources’ remains unchanged from AY 2019-20. |
| 4 | Multiple bank accounts can be selected for refund credit | In preceding AY 2019-20, only one bank account was allowed to be selected for refund credit.
In AY 2020-21, multiple bank accounts are allowed to be selected for getting the refund credit. In case multiple accounts are selected for refund credit, then refund will be credited to one of the account decided by CPC after processing the return. |
| 5 | Schedule DI – Details of Investment | A new ‘Schedule DI – Details of Investment’ is added to report investment/expenditure made between 01.04.2020 to 30.06.2020. It is commensurates with the time extension granted by Taxation and Other Laws (Relaxation of certain provisions) Ordinance, 2020 for the purpose of claiming deduction for AY 2020-21 for investments, etc made under chapter VI-A till 30.06.2020. |
| 6 | No Change in Details of Companies | In case of details of companies where the taxpayer is a shareholder of unlisted equity shares ‘Type of Company’ is retained in ITR-5. |
| 7 | Schedule 112A inserted to report individual scrip wise details | ‘Schedule 112A: From sale of equity share in a company or unit of equity oriented fund or unit of a business trust on which STT is paid under section 112A’ is inserted and notified in this year’s ITR to report individual scrip wise details on long term shares which was earlier exempt from tax and eligible for grandfathering.
Earlier, this was introduced in the later version e-filing utility for AY 2019-20, but made optional. |
| 8 | 115AD(1)(b)(iii) proviso inserted to report individual scrip wise details for Non-resident | New Schedule ‘115AD(1)(b)(iii) proviso: For NON-RESIDENTS – From sale of equity share in a company or unit of equity oriented fund or unit of a business trust on which STT is paid under section 112A’ is inserted. |
CHANGES IN ITR – 6
– for AY 2020-21
| S.NO. | Changes in ITR-6 | CHANGES IN FOMRS |
| 1 | Multiple bank accounts can be selected for refund credit | In preceding AY 2019-20, only one bank account was allowed to be selected for refund credit.
In AY 2020-21, multiple bank accounts are allowed to be selected for getting the refund credit. In case multiple accounts are selected for refund credit, then refund will be credited to one of the account decided by CPC after processing the return. |
| 2 | Schedule DI – Details of Investment | A new ‘Schedule DI – Details of Investment’ is added to report investment/expenditure made between 01.04.2020 to 30.06.2020. It is commensurates with the time extension granted by Taxation and Other Laws (Relaxation of certain provisions) Ordinance, 2020 for the purpose of claiming deduction for AY 2020-21 for investments, etc made under chapter VI-A till 30.06.2020. |
| 3 | No Change in Details of Companies | In case of details of companies where the taxpayer is a shareholder of unlisted equity shares ‘Type of Company’ is retained in ITR-6. |
| 4 | Option for section 115BAA/115BAB | A new option is added in the ‘Filing Status’ section with regard to exercising of option under section 115BAA/115BAB introduced by
Option needs to be exercised in Form 10-IC/10-ID. |
| 5 | Schedule 112A inserted to report individual scrip wise details | ‘Schedule 112A: From sale of equity share in a company or unit of equity oriented fund or unit of a business trust on which STT is paid under section 112A’ is inserted and notified in this year’s ITR to report individual scrip wise details on long term shares which was earlier exempt from tax and eligible for grandfathering.
Earlier, this was introduced in the later version e-filing utility for AY 2019-20, but made optional. |
| 6 | 115AD(1)(b)(iii) proviso inserted to report individual scrip wise details for Non-resident | New Schedule ‘115AD(1)(b)(iii) proviso: For NON-RESIDENTS – From sale of equity share in a company or unit of equity oriented fund or unit of a business trust on which STT is paid under section 112A’ is inserted. |
CHANGES IN ITR – 7
– for AY 2020-21
| S.NO. | Changes in ITR-7 | CHANGES IN FOMRS |
| 1 | Changes in Registration details | The following additional columns have been added for new provisions-
(i) Whether Application for registration is made as per new provisions
(ii) Section under which the registration is applied
(iii) Date on which the application for registration/approval as per new provisions is made
(iv) Section of exemption opted for under the new provisions |
| 2 | No Change in Details of Companies | In case of details of companies where the taxpayer is a shareholder of unlisted equity shares ‘Type of Company’ is retained in ITR-5. |
| 3 | Multiple bank accounts can be selected for refund credit | In preceding AY 2019-20, only one bank account was allowed to be selected for refund credit.
In AY 2020-21, multiple bank accounts are allowed to be selected for getting the refund credit. In case multiple accounts are selected for refund credit, then refund will be credited to one of the account decided by CPC after processing the return. |
