Detailed Analysis of ITR Forms A.Y 2020-21

Last Updated On: July 17, 2020, 9:12 p.m.



Central Board of Direct Tax has notified the amendment rule to 12 and new ITR forms for the assessment year 2020-21.

The amendment Rule 12 states that any person falling under these two categories are not allowed to file ITR-1

  • A person who owns a house property in joint-ownership.
  • A person who has entered into specified transactions mentioned in the seventh proviso to section 139(1).

However, the person falling under the second category is allowed to file Form ITR-4.

The recent amendment notification made in the month of January allows an Individual/HUF owning a property in joint ownership or covered under the seventh proviso, to file return in ITR-1 or ITR-4 only if they fulfill other conditions.



The taxation and other laws ordinance 2020, has extended the time limit till 30-09-2020 to make investments, deposits, payments, etc., for the year 2019-20 for claiming deduction under Chapter VI-A, section 10AA and section 54 to 54GB  due to COVID-19 pandemic.

 A new Schedule DI has been inserted in the ITR forms to allow taxpayers to avail of the deduction for the investments/deposits made during the extended period.

Schedule DI has been bifurcated into 3 parts:

  • PART A seeks details of the investment, deposit, or payments made to claim deduction under Chapter VI-A.
  • Part B seeks detail of eligible amount of deduction available under section 10AA; and
  • Part C seeks details of payment, acquisition, purchase, or construction made to claim deduction under Sections 54 to 54GB.

NOTE: There is no increase in the threshold limit available under respective sections though the time limit for making an investment has been extended.


Additional information required to be furnished by the person filing return under the seventh proviso to section 139(1):

The Finance Act,2017 has inserted the seventh proviso to section 139(1) to ensure that individuals, entering into certain high-value transactions, to furnish their Income-tax return.

The provision requires every person, who is otherwise not required to file the return due to the reason that his income does not the exceed the maximum exemption limit, to file the return of income if during the previous year he has:

(a) deposited more than Rs.1 crore in one or more current account maintained with a bank or a co-operative bank;

(b) incurred more than Rs. 2 lakh for himself or any other person for travel to a foreign country; or

(c) incurred more than Rs. 1 lakh towards payment of electricity bill.


Interchangeability of PAN or Adhaar in various schedules:

The Finance (No. 2) Act, 2019 inserted sub-section (5E) to Section 139A to allow the interchangeability of Aadhaar with PAN. Thus, where a person has not been allotted PAN, but he possesses the Aadhaar, he may furnish his Aadhaar number instead of PAN, and such person shall be allotted a PAN in the prescribed manner. Accordingly, the assessee can furnish Aadhaar or PAN in respect to the following person:

  • A person filing the Income-tax return as a representative assessee
  • Auditor (proprietorship/ firm)
  • Debtors, in respect of whom bad-debt of Rs. 1 lakh or more is claimed
  • Co-owner of the house property
  • Tenant(s) of the house property
  • Buyer of the immovable property transferred during the year
  • A person whose tax credit is being claimed by the assessee
  • Tenants/buyer who has deducted tax at source
  • Key person and person verifying the return of a company
  • A person holding 10% or more of the voting power in case of an unlisted company
  • Shareholders of unlisted companies including start-ups
  • A person whose income is clubbed with the income of the assessee
  • Spouse governed by Portuguese Civil Code


 Reporting of Income or loss from pass-through entities:

If an entity is provided passthrough status under the Income-tax Act then such entity is allowed to pass its income to its investors without paying taxes and, consequently, investors are liable to pay tax on such income as if they have directly made the investments. Therefore, the tax is charged at the level of the investor and not in the hands of the entity.


Companies opting for section 115BAA and 115BAB

Section 115BAA and Section 115BAB were introduced by the Taxation Laws (Amendment) Act, 2019 to provide special tax regimes for various specified domestic companies. There are some disallowances under the alternate tax regimes. Thus, in Part-A of General Schedule, the company is required to choose whether it is opting for any of the alternative tax regimes of sections 115BA, 115BAA, or 115BAB.


Additional Amendments:

1. A depreciation rate of 45% added in the block of plant and machinery

2. Assessee can choose multiple bank accounts for payment of refund

3. Foreign companies to report income from royalty or FTS
chargeable to tax at the rate of 50%

4. Trust to furnish details of re-registration made under the new provisions

5. Corpus donation not to be considered as an application of Income

6. Separate reporting to be made of interest payable on loan taken from a Deposit Taking NBFC or Systematically Important NBFC

7. Option to choose ‘Self-occupied property’ introduced in ITR-5 and ITR-6.

8. Reporting of disallowance under section 40(ba)

9. Type of company to be reported if the assessee is a director in a company or holding unlisted equity shares


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