ITR-1:- Form ITR 1 is available for individuals being a resident (other than not ordinarily resident) having total income up to Rs.50 lakh, having Income from Salaries, one house property, other sources (Interest, etc.), and agricultural income up to Rs.5, 000. However, it is not applicable for an individual who is either Director in a company or has invested in unlisted equity shares.
ITR-4:- Form ITR -4 is available for individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs.50 lakh and having income from business and profession which is computed under section 44AD, 44ADA or 44AE. However, it is not applicable for an individual who is either Director in a company or has invested in unlisted equity shares.
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Changes in ITR 1 and ITR 4
The taxpayers are required to furnish more detailed information in New ITR forms, such as:
- Taxpayers need to answer the following questions related to deposits in current accounts, foreign travel and electricity bills in all the ITR form in the following manner:
- Whether you have deposited more than Rs 1 crore in the account,
- Whether you have spent more than Rs 2 lakh during international travel,
- Whether your electricity expenses is more than Rs 1 lakh and
- A new “Schedule DA” is to be filled for amount investment/ deposited/ payment made during the period from 01.04.2020 to 30.06.2020.
- Further, if you jointly own a house property, then you are no longer eligible to file ITR-1 and ITR-4.
- A taxpayer who has a brought forward/carry forward loss from ‘Income from house property’ cannot use ITR-4 to file his income tax return for FY 2019-20 onwards.
- In case a representative files ITR-4, Aadhaar number of the representative is required to be provided in ITR-4 from FY 2019-20 onwards.
- The ‘Financial particulars of the business’ section of the ITR-4 has been replaced by “Particulars of cash and bank transactions relating to presumptive business”. Under this tab, the taxpayer will have to enter the opening balance of cash and bank (aggregate of all bank accounts), receipts during the year, and payments or withdrawals made in the previous year.