On 3rd January 2020 Central Board of Direct Taxes has notified two forms ITR-1 and ITR-4 for the ensuing Assessment Year 2020-21.

ITR-1 named as ‘Sahaj’ is meant for an individual whose incomes primarily include salary income and whose total income does not exceed Rs. 50 lakh during the Financial Year 2019-20 while ITR-4 named as ‘Sugam’ is meant for resident individuals, Hindu Undivided Family and firms (other than LLP) having a total income of up to Rs. 50 lakh from business and profession.

New ITR-1 is not applicable for an individual who is either Director in a company or has invested in unlisted equity shares or has any brought forward / carry forward loss under the head ‘Income from House Property’. It is also not valid for those individuals who have deposited more than Rs 1 crore in a bank account or have incurred Rs 2 lakh or Rs 1 lakh on foreign travel or electricity respectively. Return in ITR-1 cannot be filed by an individual who has received a notice pursuant to search proceedings under the Income Tax Act. Such taxpayers will have to use different forms, which is likely to be notified in due course.

Disclosure of details of deposits more than Rs. 1 crore in current banking account(s), expenditure in excess of Rs. 2.00 lakh on foreign travel, and expenditure in excess of Rs. 1.00 lakh on electricity consumption during the Previous Year are important new disclosure requirements in ITR-4.

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