Tax experts have welcomed the government's initiative of going back to previous condition.
In a major relief to the taxpayers, the Income Tax (I-T) Department has granted relaxation in eligibility conditions for filing of Income-tax return form-1 (Sahaj) and form-4 (Sugam) for assessment year 2020-21. As per the new order, taxpayers owning a single house in joint names would continue to file their income tax returns (ITRs) in simpler ITR-1 (Sahaj) and ITR-4 forms (Sugam).
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Also, taxpayers who have deposited more than Rs 1 crore in a bank account or spent Rs 2 lakh on foreign travel or paid Rs 1 lakh on electricity bill in a financial year would continue to use the ITR-1 form.
Here are the key things to know about the new order:
The relaxation comes days after the government modified the eligibility for filing the returns in ITR-1 and ITR-4. In the big changes by the Income-Tax department last week, individual taxpayers were disallowed to file return either in ITR-1 or ITR 4 if he or she was a joint-owner in house property.
Concerns were raised that the changes are likely to cause hardship in the case of individual taxpayers.
The matter was hence examined and it has been decided to allow a person, who jointly owns a single house property, to file his/her return of income in ITR-1 or ITR-4 form, as may be applicable, if he/she meets the other conditions.
Tax experts have welcomed the government's initiative of going back to the previous condition.
According to Shailesh Kumar, Director, Nangia Andersen Consulting, it is a welcome clarification, allowing middle-class taxpayers owning a single house property to file simpler ITR forms, 1 and 4.
"By today's clarification, the government has maintained the status quo. Now, the taxpayers can continue filing their returns in the same fashion in which they did last year," said Naveen Wadhwa, deputy general manager, Taxmann, an e-filing intermediary.
It may be noted that the tax department is yet to enable the tax filing utilities, which will be enabled in due time and other remaining forms will be released as well.
What are these forms for?
ITR-1 is for a resident whose total income from salary, one house property and other sources does not exceed Rs 50 lakh.
Meanwhile, form ITR-4 (Sugam) is meant for resident individuals, HUFs and firms (other than LLP) having a total income of up to Rs 50 lakh and having presumptive income from business and profession.
First Published: IST