The Income Tax department has announced forms for filing I-T returns for the 2020-21 fiscal, the Central Board of Direct Taxes explained on Thursday. In this article, we will discuss CBDT notifies Income Tax Return forms.
CBDT notifies Income Tax Return forms
The Income Tax department has announced the notification forms for filing I-T returns for 2020-21 fiscal, the Central Board of Direct Taxes declared.
Keeping in view the continuous crisis due to the COVID pandemic and to facilitate the taxpayers, no considerable change has been made to the ITR Forms in comparison to the last year’s ITR Forms.
Only the bare least changes necessitated due to revisions in the Income-tax Act, 1961 have been made,” the Central Board of Direct Taxes (CBDT) announced in a statement.
ITR Form1 (Sahaj) andITR Form 4 (Sugam) are easier Forms that cater to a big number of small and medium taxpayers. Sahaj can be filed by an individual having income up to Rs 50 lakh and who obtains income from salary, one house property / other sources (interest etc).
Individuals and HUFs not having income from a company or profession (and not competent for filing Sahaj) can file ITR-2, while those having income from business or business can file ITR Form 3.
Further Notification by CBDT
Persons are other than individual, HUF and businesses i.e. partnership firm, LLP etc can file ITR Form 5. Businesses can file ITR Form 6. Trusts, political parties, charitable institutions etc contending exempt income under the Act can file ITR-7.
Note- There is no change in the manner of filing of ITR Forms as compared to last year, the CBDT confessed.
For the 2020-21 fiscal, the government had given taxpayers the option to select a modern tax regime under section 115BAC of the I-T Act. The new I-T slabs would be for individuals not benefiting or foregoing certain prescribed deductions or exemptions while computing total income for tax purpose.
Under this, annual income up to Rs 2.5 lakh is free from tax. Those individuals receiving between Rs 2.5 lakh and Rs 5 lakh will pay 5 per cent tax. Income between Rs 5 and 7.5 lakh will be taxed at 10 per cent, while those between Rs 7.5 and 10 lakh at 15 per cent.
Also, earning between Rs 10 and 12.5 lakh will pay tax at the price of 20 per cent, while those between Rs 12.5 and Rs 15 lakh will pay at the price of 25 per cent. Income above Rs 15 lakh will be imposed at 30 per cent.