Big News: Change in the rules of Return of Income Tax

Big News: Change in the rules of Return of Income Tax

Not just electric wire, the electric bill is enough to give a shock. It is now going to jolt you along with the Income Tax Department. The Income Tax Department has changed the income tax returns for individual taxpayers while referring to this bill and the relation of the Income Tax Department. Under which the form will be set aside for those who pay electricity bills above one lakh rupees.

Along with it, the Joint owners of the house and those who spend more than two lakhs rupees every year on traveling abroad will not be able to file returns from ITR-1 form. Normally, the government issues a notification in April month of every year for personal income tax returns. This time notification for the assessment year 2020-21 has been already issued in January. It led to two changes in ITR. Under this, an individual taxpayer who owns a house in joint ownership cannot fill returns through ITR-1 or ITR-4.

Understand it through this:

As per the notification, two major changes are made in ITR. Any individual taxpayer, who owns a house in joint ownership, will not be able to file returns through ITR-1 or ITR-4. The taxpayer will have to fill a separate form to give all the information to the department. Other than that, all those who have deposited cash in excess of one crore in the bank, those who spend lakhs on traveling abroad every year and those taxpayers who are paying more than one lakh rupees on electricity bills are required to fill their returns through a separate form.

According to the current system, individuals with an annual income of up to Rs 50 lakh can fill the ITR-1 ‘Sahaj Form’. At the same time, Hindu undivided families with the annual income up to 50 lakh rupees through estimated business and employment, all companies excluding LLP and individual taxpayers used to fill return through ITR-4 Sugam which is now changed.

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