For F.Y. 2019-2020 / A.Y. 2020-2021 there are few new requirements / information to be given in Income tax Return:
- Investment details in unlisted companies
- Residential status
- Directorship in Company
- Whether any investment made between 01.04.2020 to 31.07.2020
- Seventh proviso to section 139(1) of the Income Tax Act, 1961
- Manner of filing of return
- Due date of filing Income Tax Return
1) Investment details in unlisted companies (If any)
If you are holding shares in an unlisted company then, following details is required :-
(a) name of the company,
(b) PAN of the company,
(c) number and cost of acquisition at the beginning of the year,
(d) number of shares,
(e) face value,
(f) issue price (or purchase price) and
(g) date of purchase of shares acquired during the year, number and
(h) sale consideration of shares transferred during the year, number and
(i) cost of acquisition of shares held at the end of the previous year
2) Residential status (Non-Resident)
In case of Non-resident following information is required:-
(a) number of days of stay in India (From 01.04.2019 to 31.03.2020)
(b) jurisdiction of his residence and (Country/States of residence)
(c) tax identification number in case he is a non-resident (Local Tax identification number , if any)
If you are Director of a company, then provide following information:-
(a) name of company
(b) PAN of Company
(c) whether shares are listed or unlisted.
(d) DIN (Director Identification Number)
4) Whether any investment made between 01.04.2020 to 31.07.2020 (as per below mentioned schedule , if any)
Due to COVID-19, the government extended the benefit of claiming tax deduction/exemptions expiring on 31 March 2020 until 31 July 2020 (further extended to 31 July 2020).
Accordingly, a separate schedule DI requires taxpayers to provide the details of the investment or payments or expenditure for which they wish to claim a tax deduction or exemption.
The claim for deductions and exemptions under schedule details of Investments (DI) is part of the claims a taxpayer can make for the period 1 April 2019 and 31 March 2020. However, the aggregate deduction cannot exceed the yearly limit applicable to the FY 2019-20.
|Section||Particulars||Total Investment during F.Y. 2019-2020(including investment made between 01.04.2020 to 31.07.2020)||Investment between 01.04.2020 to 31.07.2020 included in Total Investment eligible for deduction in F.Y. 2019-20 (A.Y.2020-21)|
|80C||Life Insurance Premia, deffered annuity, contribution to providend fund etc|
|80CCC||Contribution to certain pension funds|
|80CCD(1)||Contribution of employee / Self Epmployed|
|80CCD(1B)||Investment in National Pension Scheme|
|80CCD(2)||Contribution of employer [Only For Central Government employee]|
|80D||Medical Insurance Premium|
|80DD||Medical Treatment Handicaped Dependents|
|80DDB||Deduction Medical Treatment|
|80E||Interest on loan taken for education|
|80EE||Deduction in respect of interest on loan taken for residential house property|
|80EEA||Deduction in respect of interest on loan taken for certain residential house property|
|80EEB||Deduction in respect of intt on loan taken for purchase of electirc vehicle|
|80G||Deduction in respect certain fund, charitiable institutions etc|
|80GGA||GGA – Certain Donation for scientific research|
|80GGC||Contribution by any person to political parties|
5) Seventh proviso to section 139(1) of the Income Tax Act, 1961
Filing of return in case of expenditure or high-value transactions: [Seventh proviso to section 139(1)]
This provision is introduced by the Finance (No. 2) Act, 2019 and is applicable from the assessment year 2020-21.
The Union Budget, 2019 has widened the scope of compulsory filing of return. Normally, the filing return of income is linked to the total income of a person.
However, for the following persons return filing is made compulsory (from the assessment year 2020-21) based on certain high-value transactions even though they are not otherwise required to file a return of income on the basis of total income-
(a) who have deposited more than Rs. 1 crore in one or more current accounts maintained with a bank or co operative bank in a financial year, or (deposit in cash or cheque or otherwise)
(b) who have expended more than Rs. 2 lakh on foreign travel for himself or any other person in a financial year, or
(c) who have incurred more than Rs. 1 lakh on electricity consumption in a financial year, or
(d) who fulfill the prescribed conditions (not yet prescribed),
The above provisions are contained in the seventh proviso to section 139(1) of the Income Tax Act, 1961.
6) Manner of Filing of Income Tax Return
No changes in the manner of furnishing return of income are notified for the A.Y. 2020-21. Therefore, the rules for furnishing the return of income as applicable in the last year are applicable for the current assessment year.
The Rules of filing return of income are as follows:-
|Person||Condition||Manner of furnishing ITR|
|Individual or HUF||(a) Tax Audit is applicable u/s 44AB||Online filing of ITR with a digital signature.|
|(b) Very Senior Citizen (age is 80 years or more) and filing ITR-1 or ITR-4||(i) Online filing of ITR with or without digital signature, or
(ii) Paper Form filing of ITR
At the option of the assessee.
|(c) Other cases,-viz
(i) Tax Audit Not Applicable
(ii) Senior citizens
(iii) Very senior citizens not filing ITR-1 or ITR-4
Normal salaried individuals are covered here.
|(i) Online filing of ITR with or without digital signature.|
|Company||In all cases||Electronically under digital signature.|
|A person required to furnish the return in Form ITR-7||(a) In case of a political party;||Electronically under digital signature.|
|(b) In any other case||Online filing of ITR with or without digital signature.|
|Firm or limited liability partnership or any person (other than a person mentioned in Sl. 1 to 3 above) who is required to file return in Form ITR-5||(a) Tax Audit is applicable u/s 44AB||Online filing of ITR with a digital signature.|
|(b) Other cases (Non-audit cases)||Online filing of ITR with or without digital signature.|
|Note: In case a return of income (ITR) is filed without digital signature, the ITR shall be verified by EVC or by submitting the ITR-V at CPC, Bangalore within 120 days of the filing of online return by ordinary or speed post after manually signing the ITR-V.|
From the above, it is clear that ITR should be filed online, except in case of a very senior citizen individual filing ITR-1 or ITR-4 where paper filing is allowed.
In tax audit cases, it is mandatory to verify the return with a digital signature only.
In other cases (non-audit cases) digital signature is not mandatory to verify the ITR. It is optional.
Where a return of income is not verified with a digital signature, then the same may be verified with EVC through net banking or Aadhar OTP or prevalidated bank accounts or Demat accounts.
Instead of EVC verification, a return may be verified manually. In this case, a return shall be verified by submitting the ITR-V at CPC, Bangalore within 120 days of the filing of online return by ordinary or speed post after manually signing the ITR-V.
7) Due date of Filing Income Tax Return
As announced by the government via a press conference, “Due date for all income-tax return for FY 2019-20 will be extended from July 31, 2020, and October 31, 2020, to November 30, 2020, and tax audit from September 30, 2020, to 31st October 2020.
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