CBDT notifies and revises eligibility norms for ITR-1 SAHAJ and ITR-4 SUGAM for AY 2020-21

CBDT notifies and revises eligibility norms for ITR-1 SAHAJ and ITR-4 SUGAM for AY 2020-21

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

Notification No. 01/2020

New Delhi, the 3rd January, 2020

INCOME-TAX

G.S.R. 9(E).—In exercise of the powers conferred by section 139 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—

1. Short title and commencement.—(1) These rules may be called the Income-tax (1st Amendment) Rules, 2020.

(2) They shall come into force with effect from the 1st day of April, 2020.

2. In the Income-tax rules, 1962 (hereinafter referred to as the principal rules), in rule 12,−

(a) in sub-rule (1),-

(I) in the opening portion, for the figures “2019”, the figures “2020” shall be substituted;

(II) in clause (a), in the proviso,-

(i) in item (V), the word “or” occurring at the end shall be omitted;

(ii) after item (VI), the following items shall be inserted, namely:-

“(VII) owns a house property in joint-ownership with two or more persons; or

(VIII) is required to furnish a return of income under seventh proviso to sub-section (1) of section 139.”;

(III) in clause (ca), –

(ii) in the proviso, after item (V), the following item shall be inserted, namely:-

“(VI) owns a house property in joint-ownership with two or more persons.”;

(b) in sub-rule (5), for the figures “2018”, the figures “2019” shall be substituted.

3. In the principal rules, in Appendix II, for Form “Sahaj (ITR-1)” and “Sugam (ITR-4)”, the following Forms shall, respectively, be substituted, namely:-

Form ITR-1 SAHAJ

[For individuals being a resident (other than not ordinarily resident) having total income upto Rs.50 lakh, having Income from Salaries, one house property (single ownership), interest income, Family pension income etc. and agricultural income upto Rs.5 thousand]

[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’ or has to furnish return under seventh proviso to section 139(1) of the Income Tax Act]

Form ITR-4 SUGAM

[For Individuals, HUFs and Firms (other than LLP) being a resident having total income upto 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 upto Rs.5 thousand]

[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’]

[F. No. 370142/32/2019-TPL]

ANKUR GOYAL, Under Secy.

Note : The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number S.O.969(E), dated the 26th March, 1962 and last amended by the Income-tax (16th Amendment) Rules, 2019, vide notification number GSR. 960(E), dated 30th December, 2019.

New eligibility norms for ITR SAHAJ and ITR SUGAM for AY 2020-21

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• Assessee eligible for Chapter VIA deduction u/s 80IE on increased income due to disallownces
• Assessee filing ITR under presumptive tax can’t be faulted for not giving details not mandated
• Sale of flats in a real estate project held capital gains considering intention of assessee
• Interest liability recognised by journal entries at the close of year, can’t be termed as fictitious – ITAT
• Cash deposits in bank which were immediately transferred to other accounts – addition deleted