Changes in ITR 4-Sugam for A.Y. 2020-21

The Central Board of Direct Taxes (CBDT) has notified two Income Tax return (ITR) forms for the assessment year of 2020-21 i.e. ITR-1 (Sahaj) and ITR-4(Sugam) in the first week of January.Only the forms have been notified without the return filing utility. Thus, a taxpayer, who is required to file the return before the previous year ends, cannot do so until the return filing facility is activated on the e-filing portal.

Persons required to furnish income tax return in form ITR-4:-

ITR 4-Sugam is for Individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs.50 lakh, one house property (single ownership), having income from business and profession which is computed under sections 44AD, 44ADA or 44AE or Interest Income, Family pension etc. and agricultural income up to Rs.5,000. However, it is not for an individual who is either Director in a company or has invested in unlisted equity shares or has any brought forward / carry forward loss under the head ‘Income from House Property’.

Changes in ITR 4-Sugam for A.Y. 2020-21

Major changes innew ITR 4- Sugam:-

Following are some changes in new ITR 4- Sugam with effect from A.Y. 2020-21 :-

• If an assessee is having a Passport, its number is to be given in the Income Tax Return.

• If an assessee has incurred aggregate expenses exceeding ₹2 lakhs on foreign travel for self or for any other person, then such amount of expenses should be specified.

• If an assessee has deposited any amount in aggregate, exceeding ₹1 crore in one or more current accounts then such aggregate amount deposited in all such accounts is to be specified.

• If an assessee incurs any amount exceeding ₹1 lakh on electricity consumption then such aggregate amount should be specified.

• If any assessee owns any property as a co-owner, then he will not be eligible to file ITR 1 (Sahaj) or ITR 4 (Sugam).

• In case of an assessee, who opts to file returns under section 44AD or 44ADA or 44AE, the assessee will be required to specify the following:-

(i) Opening balance of cash in hand and opening balance of bank account(s).
(ii) Total amount received in cash during the year
(iii) Total amount deposited in bank during the year
(iv) Total amount of cash outflow out of the cash balance during the year
(v) Total amount of withdrawal from bank account(s) during the year, and
(vi) Closing balance of cash in hand and closing balance of banks account(s)

• There is no requirement to provide figures of unsecured loans, sundry debtors, sundry creditors, amount of closing stock, etc. as was required in the earlier years.

For Regular Updates Join : https://t.me/Studycafe

Click Here to Buy CA INTER/IPCC Pendrive Classes at Discounted Rate

Tags : Income Tax