The New Financial Year started off with the Income Tax Department releasing the New Income Tax Return Forms for the FY 2020-21 i.e. Assessment Year 2021-22.
A taxpayer uses Income Tax Return forms to report their annual income to the Income Tax Department.
The ITR Forms for FY 2020-21 (AY 2021-22) are not that different from the last years.
What Changed in the New ITR Form for F.Y. 2020-21 (A.Y. 2021-22)?
Changes Applicable to all ITR Forms for FY 2020-21 (AY 2021-22)
- Select if you are opting for the New Tax Regime u/s 115BAC
From FY 2020-21 onwards, taxpayers have the option to choose between the old and new tax regimes.
Taxpayers, also need to submit Form 10-IE to the Income Tax Department before filing the Income Tax Return.
In the New Income Tax Return Form, taxpayers can choose between the old and new tax regime by answering the following question in their ITR.
“Are you opting for new tax regime u/s 115BAC? Yes No”
Based on your choice, your tax liability may differ. Under the New Tax Regime, you can enjoy lower tax rates but need to let go of itemized deductions. Whereas under the Old Tax Regime, you can continue to claim itemized deductions, however, the Income Tax Slab rates are higher.
Confused which Income Tax Regime is better for you? You can add your incomes and deductions under the Income Tax Calculator to compare your Income Tax Liability under the Old and New Tax Regime.
- Report Dividend Income with Quarterly breakdown
The Dividend Income should be reported with a quarterly breakdown under the head “Income from Other Sources“. This quarterly breakdown will help to calculate and determine interest penalty u/s 234C for the Delay in payment of Advance Tax.
What are the types of ITR forms?
ITR 1 (Sahaj)
It is the simplest income tax return form. ITR 1 can be filed by:
- Indian Resident (check your Residential status as per Income Tax)
- Salaried Individuals
- Individuals earning income from 1 house property (eg: Rent)
- Individuals earning income from other sources like savings account interest, Fixed Deposit interest, etc.
- Income is upto INR 50 lakh for the financial year
ITR 4 (Sugam)
Taxpayers who have opted for the presumptive taxation scheme can file for ITR 4, including:
- Indian Residents- Individuals, HUFs and firms (other than LLPs) (check your Residential status as per Income Tax)
- Businesses and Professionals under the presumptive taxation scheme
- Income is less than INR 50 lakh for the financial year
The PDFs for the New ITR Forms for F.Y. 2020-21 (AY 2021-22) have been released, ITD usually releases schemas/utilities few days/weeks after launching forms.
Got questions around the New ITR Forms for FY 2020-21 (AY 2021-22)? Shoot’em on TaxQ&A and we’ll answer them all in the simplest way!