The income tax department has recently notified the income tax return (ITR) updated forms for FY 2019-20. In the updated ITR form, few additional disclosures are required. Also, those who have paid Rs 1 lakh in electricity bills in a year or incurred Rs 2 lakh expense on foreign travel cannot file their tax return using the simple ITR-1 form.
Further, on January 9, the CBDT has issued a notification where CBDT has allowed joint owners of single house property to file the Income tax return using the ITR-1 form.
The notification can be read as follows “After the aforesaid notification, concerns have been raised that the changes are likely to cause hardship in the case of individual taxpayers. The taxpayers with jointly owned property have expressed concern that they will now need to file a detailed ITR Form instead of a simple ITR-1 and ITR-4. Similarly, persons who are required to file return as per the seventh proviso to section 139(1) of the Act, and are otherwise eligible to file ITR-1, have also expressed concern that they will not be able to opt for a simpler ITR-1 Form.
The matter has been 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”.
Who is covered under the seventh proviso of section 139(1)?
As per seventh proviso of section 193(1), the individuals are,
(a) who have deposited more than Rs 1 crore in one or more current accounts in the FY 2019-20,
(b) who have spent more than Rs 2 lakh on foreign travel on him/herself or any other person and
(c) those who have paid more than Rs 1 lakh as electricity bill in FY 2019-20.
Now, Who can file ITR- 1 for FY 2019-20?
As per the notified forms and latest notifications from the income tax department, ITR1 can be filed by the following individuals:
- Resident individuals whose total income does not exceed Rs 50 lakh;
- Individuals having sources of income salary, house property, interest income, family pension etc.;
- Individuals who have spent more than Rs 2 lakh on foreign travel on himself/herself or any other person in FY 2019-20
- Individuals who have deposited more than Rs 1 crore in one or more current account in FY 2019-20;
- Individuals who have paid more than Rs 1 lakh as electricity bill in FY 2019-20;
- Individuals having one house property irrespective of ownership status, i.e., single house property either owned fully or jointly with someone.
Who cannot file tax ITR – 1 for FY 2019-20?
- Individuals who are non-resident or not ordinarily resident.
- Resident individuals whose total income exceeds Rs 50 lakh;
- Individuals having sources of income other than interest like dividend income.
- Individuals who have invested in unlisted equity share, gained as capital gains- either short-term or long-term or both;
- Individuals who are directors in a company;
- Individuals who have to carry forward losses under the head ‘Income from house property’;
- Individuals who have more than one house property.