ITR-1 : File Income Tax Return for A.Y. 2020-21

ITR-1 form for A.Y. 2020-21 has been declared by Income Tax Department on 1st June.

ITR-1 is Income tax preparation form and utility for individuals for filing income tax return in below cases :

Individual should have Resident Status as per Income tax provisions i.e. for Non Resident and Non Ordinary Resident cannot file their income tax return through ITR-1.
Individual who is having total income upto Rs. 50 lakhs I.e. If you have income more than Rs. 50 Lakhs from any source of income, you cannot file income tax return through ITR-1
Income upto Rs. 50 lakhs should be from below sources :

A) Income from Salaries or pension or family pension or Employee provident fund taxable income

B) Income from Only One House Property

C) Income from Other sources (interest etc.)

D) Income from Agricultural activities upto Rs. 5000

4. Individual who is not director of any company

5. Individual who is not holding any equity share in unlisted company.

So from above analysis we have concluded that ITR-1 is not applicable to below persons :

Non Resident and Resident but not Ordinary Individuals.
Individuals having income above Rs. 50 lakhs
Individuals who is having income from a) more than two house properties b) having any kind of capital gain income c) having business or profession income d) having agricultural income more than Rs. 5000 in a year.
Individual who is director in any company or he is holding equity share in any unlisted company.

What’s New in ITR-1 form for A.Y. 2020-21 ?

In ITR-1 Form of A.Y 2020-21 below information is more asked you have to fill while filing Income tax return :

Have you deposited amount or aggregate of amount exceeding Rs. 1 Crore in one or more current account during the previous year ?
Have you incurred expenditure of an amount or aggregate of amount exceeding Rs. 2 Lakhs for foreign travel for yourself or any other person?
Have you paid electricity bill more than Rs. 1 lakh during the previous year?

Saving and Investment done during period 01/04/2020 to 30/06/2020 :

A new Column for detail of investment and saving done during period 01/04/2020 to 30/06/2020 for deduction to be claimed in Income tax return.

So if you have paid for life insurance, donation, medical insurance or NPS or any other investment or saving during period 01/04/2020 to 30/06/2020, you can claim deduction in ITR-1, but overall limit for claiming deduction shall be same as in previous year like Rs. 150000/- limit for section 80C, Rs. 25000/- for Section 80D and similarly in other section as well.

Thanks

CA Lukesh Sethi

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