Tax filers who own house property in joint ownership with two or more persons can’t use these forms; high spenders also cannot use these forms
The Central Board of Direct Taxes (CBDT) has notified two income tax return forms—SAHAJ (ITR-1) and SUGAM (ITR-4)—for certain individuals with regard to assessment year 2020-21.
While ITR-1 is mainly for salaried individuals, ITR-4 is for individuals with business income and also for Hindu Undivided Family (HUF) and partnership firms.
Commenting on the latest CBDT move, Amit Maheshwari, Partner, Ashok Maheshwary & Associates LLP, a CA firm, said :”The ITR forms have been notified well in advance in order to give taxpayer more time to collate various information and file returns on a timely basis. This seems to be done to deter taxpayer from seeking extensions every year”.
Aseem Chawla, Managing Partner, ASC Legal, a law firm, said these two newly notified forms are however inapplicable to individuals / HUF who “owns a house property in joint ownership with two or more persons”. Also, high spenders who are required to file their return of income under newly inserted 7th proviso to Section 139(1) cannot file return in ITR-1, he said.
“The newly notified forms would not apply to tax filers who own house property in joint ownership with two or more persons and also high spenders and notified persons who have deposited cash in excess of one crore in one or more current accounts during the year”, Chawla said.