July 25, 2021

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The Real Estate Experts

Income Tax Return filing FY 2020-21: Know Checklist

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The Central Board of Direct Taxes (CBDT) has notified Income Tax Return Forms (ITR Forms) for the Assessment Year 2021-22 vide Notification dated March 31, 2021.

In the wake of COVID-19 pandemic the Board did not notify significant changes in the ITR Forms as compared to last year. Only the bare minimum changes necessitated due to amendments in the Income Tax Act, 1961 have been made, which are enlisted below.

What is the Income Tax Return (ITR) 1 Form?

ITR 1 Form is filed by the taxpayers and the individuals being a Resident (other than Not Ordinarily Resident) having Total Income up to INR 50 lakhs, having Income from Salaries, One House Property, Other Sources (Interest etc.), and Agricultural Income up to INR 5 thousand. (Not for an Individual who is either Director in a company or has invested in Unlisted Equity Shares). Also to note down, from now onwards, as mentioned by the tax department, furnishing PAN and Aadhaar card details on the official website of the Income Tax Department is mandatory.

Major Changes made in the ITR 1 SAHAJ for the AY 2021-22

  • Taxpayers not to file ITR-1 if TDS deducted

The taxpayer cannot file ITR-1 if TDS is deducted under section 194N. As per section 194N, tax shall be deducted at source if the non-filers of the income tax return withdraw cash exceeding the amount of Rs.20 lakh. In other cases, tax shall be deducted when the cash withdrawals exceed Rs.1 crore in a financial year.

  • No optician to carry forward TDS

No option is given to carry forward TDS under section 194N. The credit of TDS under section 194N shall be allowed only during the year in which TDS was deducted.

  • Option given to choose between old and new tax regime

The individuals or HUFs are given the option to select an old or new tax regime. If the taxpayer selects a new tax regime under section 115 BAC, he needs to file Form 10 IE before filing ITR under section 139(1).

The ITR forms for the assessment year 2020-21 were modified by including a new schedule DI. It allowed taxpayers to avail the deduction made during the extended period for the AY 2020-21. The schedule DI is removed from AY 2021-22.

Checklist of documents for filing ITR 1 Form SAHAJ

General Documents

The taxpayer while filing ITR 1 Form SAHAJ must be ready with the General Documents namely PAN and Aadhar Card.

Form-16 in respect of Salary or Pension

In respect of Salary, Form 16 is a certificate employers issue to their employees. It provides a validation that TDS has been deducted and deposited with the government authorities on behalf of the employee. It gives a detailed summary of the salary paid to the employee and the TDS deducted.

The pensioner’s form 16 includes the pension income and tax deductions.

  • Income from house property

A house property could be your home, an office, a shop, a building or some land attached to the building like a parking lot. The Income Tax Act does not differentiate between a commercial and residential property. All types of properties are taxed under the head ‘income from house property’ in the income tax return.Therefore, the taxpayer filing ITR-1 must have Rent receipt, and Housing loan account statement for deduction of interest.

  • Income from Other sources

The taxpayer must have a Bank Statement or passbook for interest on a savings account and on fixed deposits.

  • Deduction under chapter VI-A

The taxpayers must make a contribution to PF/NPS, school tuition fees, Life insurance premium receipt, Stamp duty and registration charges, Principal repayment on your home loan, Equity Linked Saving Scheme/Mutual funds investments, Receipt with details of donations eligible for 80G. The aggregate amount of deduction admissible u/s 80C, 80CCC AND 80CCD(1) and shall be restricted to maximum limit of Rs 1.5 lakh.

The taxpayer has to verify the tax payment details as available in your Form 26AS.

You need to Verify the TAN details and the amount of credit available in your form 16 (For salary), 16A (non Salary) and 16C (Rent) PAN/Aadhaar of Tenant.

Exempt income like agricultural income, dividend, Details of all active bank accounts held in India (Minimum one account should be selected for refund credit), Form 10E in case relief u/s 89 is claimed.

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