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Income Tax Return forms for Assessment Year 2021-22
The Central Board of Direct Taxes had issued the Income Tax Return forms for Assessment Year 2021-22 (The previous Year 2020-21) vide Notification No. 21/2021 on 31st March 2021. This article discusses in its first part, the applicability of the ITR 1form to Individuals and in the second the amendments made in the forms for this year, which you would have to consider while filing your IT returns.
Generally, an individual with income from salary and/or certain incomes from other sources and income from one house property can use ITR 1 to file their returns. This means that a salaried individual who may have availed a loan for construction of a house or an individual with interest income from banks would be able to file his return in form ITR 1 which is the simplest form with minimum particulars as compared to the other forms applicable for persons having income from other heads. However, as an individual, you would have to check for certain other conditions as well before proceeding to file using ITR 1. These are listed below and if you fall under any of these cases, you would have to use Form ITR 2 (in case you do not have any income from business/profession) or Form ITR 3 (in case you have income from business/profession).
• If you receive income from salary/family pension, but the status of residence based on the conditions prescribed under Section 6 of the Income Tax Act is that of a non- ordinarily resident or non-resident.
• If you are receiving the salary income in the capacity of Director of a company.
• If you have income (or loss due to interest paid on loans) from more than one house property.
• If you have brought forward losses under the head Income from house property. This can happen when in a particular year there were some losses under this head (primarily due to interest paid on loans taken to construct/purchase your house property) which could not be adjusted against other incomes like salary/interest and such losses get carried forward to the future years.
• If you have income from other sources (including income chargeable to tax at special rates, including winnings from lottery and racehorses or losses under this head).
• If the total income exceeds Rs.50 lakhs even if it’s only from salary and other sources.
• If you have any brought forward losses or losses to be carried forward under any head of income.
• If tax has been deducted under Section 194 N (This section was introduced in the previous year – Tax under this provision is required to be deducted if the amount of cash withdrawn during the year exceeds Rs. 1 crore or Rs. 20 lakhs in case of non-filers of return of income).
• If you are in receipt of ESOPs allotted by an eligible start-up under Section 80-IAC and the tax on the same is deferred consequent to changes made in the scheme of taxation of ESOPs by Finance Act 2020.
The next part of the article discusses the major changes made in the ITR forms to be filed in respect of AY 2021-22.
VBV & Associates, the Tax Consultants in Ernakulam, provides excellent Tax Advisory Services includes Income Tax, GST, and assistance in periodic compliance. Contact us at vbvassoc@gmail.com or call us at +91 980 901 2123 for further assistance.
