New ITR Form: Income Tax Department has notified the IT return form for the financial year 2020-21. The Central Board of Taxes (CBDT) has given this information. The CBDT has said that keeping in mind the convenience of Corona epidemic and Taxpayers (Taxpayers), there has not been much change in the new ITR form as compared to the old form. Only some necessary changes have been kept due to the amendments in the Income Tax Act 1961.
CBDT notifies ITR form
CBDT issues different income tax return forms for different categories of taxpayers. CBDT has already notified the ITR form (From 1-7) for Individual, Corporate and other taxpayers for FY 2020-21 or Assessment Year (AY) 2021-22. Taxpayers of non-business income salaried class usually have to file their returns through Form ITR-1 / ITR-2.
Not much change in new ITR form
Taxpayers have also been asked in Income Tax Returns (ITR) forms whether they will adopt the new tax system or continue with the old. The CBDT has stated that there has been no change in the way ITR filing has been compared to the previous year. The notified ITR form will be found at the link http://egazette.nic.in/WriteReadData/2021/226336.pdf.
ITR-1, ITR-4 for whom
ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are the easiest forms to be used by a large number of small and medium taxpayers. Sahaj forms are taxpayers whose annual income is up to 50 lakh rupees, whose income is only from salary, one house or other sources like interest. Sugam forms are filled by people, Hindu Undivided Family (HUF) and firms whose income is up to 50 lakh rupees and income from business or any profession.
how to choose ITR form
- Individuals and Hindu undivided families who do not have income from business or profession (Sahaj are not eligible to fill) can fill ITR-2
- Those whose income is from business or profession can fill the form ITR-
- Apart from Individuals, Hindu undivided families and companies like partnership firms, LLP IYTR-5 can fill the form.
- Companies can fill ITR Form-6.
- Trusts, political parties and charitable institutions, who claim exemption under the Income Tax Act, can fill ITR Form-7.
