The government will notify revised ITR forms for filing income tax returns for FY 2019-20 (AY 2020-21). The revised forms will enable taxpayers to claim the benefit of tax deductions and exemptions for investments made from 1 April 2020 and 30 June 2020. The due date for filing income tax returns is 31 July 2020.
The COVID-19 relief measures allow taxpayers to claim deductions and exemptions for investments made between 1 April 2020 and 30 June 2020.
You can claim the following benefits in the income tax returns due in July 2021:
- Claiming a deduction for tax-saving investments such as mutual fund ELSS, PPF, SSY, NSC, LIC premium and others under section 80C made until 30 June 2020. Similarly, you can also claim a deduction for medical insurance premium, donations, interest on education loan paid.
- Claiming a capital gains exemption by investing in a new house, bonds and other eligible investments by 30 June 2020. The new investment will include purchase or construction of a new house or investment in notified bonds and so on. Such investments are eligible where the time was expiring between 20 March 2020 and 29 June 2020.
- A 100% deduction for the donation paid to the PM CARES Fund up to 30 June 2020.
The revised income tax forms will be available for tax filing by 31 May 2020.
The revision in the forms will enable taxpayers to claim extended tax benefits and provide ample time to prepare themselves for the tax filing process.
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I am a Chartered Accountant by profession. I specialise in personal taxes and corporate income tax matters. I am an avid reader and track developments in financial markets, economy and other market developments.