Relaxation for Individual Tax Payers by CBDT

Relaxation for Individual Tax Payers by CBDT under Form-1 (Sahaj) and Form-4 (Sugam) for A.Y. 2020-21

As per earlier notification CBDT has made joint owners ineligible for the ITR-1 or ITR-4. This notification has created quite a lot of confusions as joint owners are forced to file a detailed return instead of these simple returns. 

INCOME TAX AMENDMENT

However, CBDT on 9 Jan, 2020 again issued a notification to simplify rules for individual tax holders by making joint holders of property eligible to file these forms (ITR-1 or ITR-4), if they satisfy the other conditions of the Income Tax Act.

Simplified Income Tax Return for Individuals  

 By having this notification, individuals who are required to file Income Tax Return under the 7^th provision of the section 139 of the Income Tax Act, are also eligible to file return in ITR-1 or ITR-4.

Read the full notification here.

Section 139 of the Income Tax Act –

Section 139 of the Income Tax Act makes filing of return compulsory for – 

(1)   Every person :-

a.      Being a company or a firm ; or

b.      Being a person other than a. (i.e. company and firm), if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount (Rs. 2,50,000/-) which is not chargeable to income-tax,

has required to furnish the return before the due date. (i.e. 31^st July for auditable assesses and 31^st August)

Assesses can file the return after the due date with the penalty and interest described under the Income Tax Act.