New ITR Forms – What are the Changes Taxpayers Should Know About

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The Central Board of Direct Taxes has recently notified two Income Tax Return Forms- ITR 1 and ITR 4. ITR-1 (Sahaj) and ITR-4 (Sugam) were notified on 3rd January 2020 and will be applicable for the assessment year 2020-21.

As the forms are released before it was expected, thereby, it would provide great help to the taxpayers. It will help them to get an overview of the forms and file their returns easily and on time.

Usually, the forms are released by the board after the end of the previous year. But this time, it is expected that the Income Tax Department will notify all the required forms by April. Thus, taxpayers can file their returns by the beginning of the next assessment year and before expiration of due dates.

Changes in ITR-1 and ITR-4 forms:

Every year the Income Tax Department makes some changes in the existing forms and replaces them by notifying new forms. Likewise, this year also some major changes that are described below have been introduced by the department in the forms. These changes in ITR-1 and ITR-4 forms are however made in accordance with the provisions of the last Finance Act.

  • Details of passport number:

As per the latest amendment made, the taxpayer is mandatorily required to mention passport number in ITR-1 and ITR-4 forms. This should be irrespective of the fact whether the taxpayer has traveled abroad or not in the relevant previous year. Besides other details of the taxpayer, this is an addition to the basic details provided in the forms.

  • TAN of employer:

These forms will require Tax deduction or Collection Account number of the employer if tax is deducted or collected. TAN is required to be mentioned along with name and address of the employer and nature of employment as well.

  • PAN and Aadhar number of tenant:

If any property has been rented out by the taxpayer, then in such a case it is mandatory to provide basic details such as PAN and aadhar number of the tenant in ITR-1 and ITR-4 forms.

  • Address of house property:

Details of house property were earlier asked in ITR-2 and ITR-3 only. But now, it is to be mandatorily furnished in ITR-1 and ITR-4 forms. Detail of unrealized rent is also required to be submitted. However, it does not matter whether the house is self-occupied, deemed to let-out or let-out.

  • Deposits in current account:

A new provision has been added in the forms whereby if during the previous year, an aggregate amount of Rs. I Crore or more is deposited by the assessee in one or more current accounts, then such amount must be disclosed in ITR-4 form.

  • Additional disclosure by PTS taxpayers:

Those opting for Presumptive Taxation Scheme will now be required to disclose the following amounts in ITR-4 form:

  • Opening and closing balance of cash in hand,
  • Opening and closing balance of bank account,
  • Amount of cash received during the previous year.


  • Eligibility criteria:

According to the latest update, ITR-1 and ITR-4 forms can now be filed by the following persons:

  • Joint owner of a house property,
  • Person who has deposited an amount of more than Rs. 1 crore in the bank account,
  • Has incurred an expense of Rs. 2 Lakh on foreign travel,
  • Has incurred Rs. 1 lakh or more on electricity.

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An MBA in finance, I like to cover the wide range of topics related to Taxation, SEBI, Finance and anything that is Public Helpful. The motive is always to make it simpler for the taxpayers understand the system better and take informed decisions.

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