Revised ITR forms to be out by month-end, new income tax return filing utility to be ready by May end

"In order to enable income taxpayers to avail full benefits of various timeline extensions granted by the Government of India due to COVID-19 pandemic situations, the CBDT is revising the return forms for FY 2019-20 (Assessment Year 2020-21) which shall be notified by the end of this month," the Central Board of Direct Taxes (CBDT) said in a statement.

New Delhi: The Central Board of Direct Taxes (CBDT) will notify the revised income tax return forms by the month-end to allow the taxpayers to avail of the benefits of extension of the deadline for investing, while its return filing utility, after incorporating the necessary changes is expected to be ready by May end.

“To facilitate taxpayer to avail full benefits with various timeline extension up to 30th June 2020 granted by the government, the board has initiated necessary changes in the return forms,” the CBDT said in a statement issued on Sunday.

The apex board that administers the direct taxes in the country, such as Income Tax, Corporation Tax, and Equalisation Levy among others, said the move will enable taxpayers to reflect investments made between April 1 to June 30, 2020, in their income tax return forms.

CBDT said as per the government’s decision these investments and transactions will be taken into account in FY 2019-20 (AY 2020-21).

To reduce the taxpayers' pain during the outbreak of the COVID-19 pandemic, finance minister Nirmala Sitharaman on March 24 had announced the extension of most of the deadlines for filing of returns or for making investment for FY 2019-20. These extensions covered both direct and indirect taxes such as GST and Income Tax, including the extension of the deadline for linking Aadhaar with PAN number.

The government has also extended the deadline for two tax dispute resolution schemes – Sabka Vishwas for indirect taxpayers and Vivad Se Vishwas for direct taxpayers – by June end.

CBDT said once the revised forms are notified, it will require further changes in the software and return filing utility.

The board said its return filing utility will be made available to taxpayers by May end after incorporating necessary changes.

The Union government amended the Income Tax Act of 1961 by issuing an ordinance to allow taxpayers to invest in the notified instruments such as LIC, PPF, NSC, Mediclaim, Donations up to June 30 to avail the tax deductions for FY 2019-20 (AY-2020-21).

The extension of the deadline also covers the dates for making investment or construction or purchase for claiming rollover benefit in respect of capital gains under sections 54 to section 54GB.

CBDT said the modified return forms will enable the taxpayers to report the transactions carried out during the relief period, from April 1 to June 30, 2020.

Usually, CBDT notifies income-tax return forms in the first week of April. This year also the e-filing utility for filing of return for Assessment Year 2020-21 was made available on April 1.

Income-tax Return (ITR) Forms ITR-1 (Sahaj) and ITR-4 (Sugam) for the FY 2019-20 (AY 2020-21) were also notified vide a notification issued in early January this year. However, following the announcement of deadlines by finance minister Nirmala Sitharaman last month, the CBDT has decided to revise the income tax forms and make them available by month-end.

(Article by Krishnanand Tripathi)