With ITR-6 being released on 22nd September 2020, the government has released all the IT forms for PY 2019-20 (AY 2020-21). The due date to file income tax returns for AY 2020-21 is 30th November 2020 for all assessees, other than tax audit cases which are due by 31st October 2020. The due dates had been extended through the recent passing of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020.
IT returns for AY 2020-21 must be filed in respect of income earned during the previous year 2019-20, i.e. between 1st April 2019 and 31st March 2020. The applicability of the IT return forms depends upon the type of assessee and the nature of income earned by him during the previous year.
Following are the key changes in ITR-6, recently released for AY 2020-21:
- Suppose the turnover is Rs 400 crore in FY 2017-18, assessees can opt for the lower income tax rate benefit given under Section 115BAA and 115BAB. The new ITR form has a separate provision made in the Filing status table under the General schedule to indicate the same. For these purposes, assessees must submit Form 10-IC/10-ID to exercise the option.
- Information is being asked regarding the applicability of audit, whether or not cash receipts and payments exceed the 5% of total turnover.
- In several tables, interchangeable quoting of PAN and Aadhaar numbers has been allowed. These include the tables where details of shareholders of unlisted companies including start-ups are asked and persons holding 10% or more of the voting power in case of an unlisted company.
- Two new schedules are added firstly, Schedule TPSA for the details of tax on secondary adjustments as per Section 92CE(2A) of transfer pricing provision and secondly, Schedule DI for direct investments made between 1st April 2020 and 30th June 2020 for Section 80 deductions and between 1st April 2020 and 30th September 2020 for Section 10AA and capital gains deductions under Section 54 to 54GB. Although, these may not apply to all assessees.
- Another major change in this year’s ITR-6 is that assessee can select multiple bank accounts for the purpose of the income tax refund. The Central Processing Centre (CPC) shall choose the suitable bank account for crediting the refund after processing the IT return.
Other ITR forms, including ITR-1 and ITR-2, have also undergone many changes for AY 2020-21. Apart from common changes such as the new DI schedule added in all the returns, there are cases of special reporting such as high-value transactions of those persons who may not be liable to file ITR due to total income being below the threshold limit chargeable to tax, as per the seventh proviso to Section 139(1).
Option to declare multiple bank accounts for refund purposes is provided in all ITR forms. The ITR-1 and ITR-2 forms have now Sections 80EEA and 80EEB incorporated with respect to interest on housing loan and purchase of electric vehicles respectively. Further, these forms require the assessee to provide the DIN of the notice in response to which he is filing the income tax return. Nature of employment required in the General Information schedule has been expanded to bifurcate the state and central government employees.
In two tables of ITR-2 where directorship details and shareholding details of the assessee is asked, a new column ‘Type of Company’ has been added to select either foreign or domestic company. Additionally, ITR-2 has been revised to have columns for the computation of the surcharges newly introduced via Finance Act, 2019 under Sections 111A, 112A and proviso to section 115AD(1)(ii)/(iii) of the Income Tax Act.
Apart from the release of ITR forms for AY 2020-21, the government has also provided a one-time extension for assessees up to 30th September 2020 to verify their income tax returns by EVC/ITR-V for AY 2015-16, 2016-17, 2017-18, 2018-19 and 2019-20, pending due to non-verification.
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Annapoorna, popularly known as Anna, is an aspiring Chartered Accountant with a flair for GST. She spends most of her day Singing hymns to the tune of jee-es-tee! Well, not most of her day, just now and then.