The Central Board of Direct Taxes (CBDT) has recently notified about the new income tax return (ITR) forms for the assessment year 2020-21. In these ITR forms there will be a separate table where the taxpayer will be able to provide the details of the investments made between April and June 2020, if they want to claim deductions against them in the financial year (FY) 2019-20.
The deadline was extended from 30th March to June 30th, for making tax saving investments which was done to provide relief to the tax payers who didn’t make any investments during that period as Lockdown was started from 25th March.
“The new forms require a separate table to disclose tax-saving investment made in Q12020 for availing them in FY20. Taxpayers must assess their tax liability for FY20 and make sure they are maximizing their Section 80C benefits if not already done so,” said Archit Gupta, founder and CEO – ClearTax, a tax filing and investing portal.
Usually, CBDT notifies about the tax forms in first week of April for that assessment year. However, this year, the tax department had notified the ITR-1 and ITR-4 in January itself. “Now, in the month of May 2020, all ITR Forms (ITR-1 to ITR-7) have been notified, which eventually replace the two previously notified forms,” said Naveen Wadhwa, deputy general manager—R&D, Taxmann, a tax and accounting firm.
The new forms will have options of details such as high spendings and deposits made by the taxpayers. A taxpayer will have to show if he or she has deposited more than ₹1 crore in the financial year in one or more current accounts.
Taxpayers will also be required to report if ₹2 lakh or more was spent on foreign travel for self or any other person and if they have spent ₹1 lakh or more for electricity bills during the year.