The Central Board of Direct Taxes (CBDT) vide Notification No. 21/2021 in G.S.R 242(E) dated 31-03-2021 by Income-tax (7th Amendment) Rules, 2021 has notified the Income Tax Return Forms (ITR Forms) ITR-1 to ITR-7 for the Assessment Year 2021-22.
The notified ITR forms do not contain any major amendments or changes compared to the preceding year except a few to incorporate the changes or amendments in the Finance Act of the relevant year.
Keeping in view the ongoing crisis due to COVID pandemic and to facilitate the taxpayers, no significant change have been made to the ITR Forms in comparison to the last year’s ITR Forms. Only the bare minimum changes necessitated due to amendments in the Income-tax Act, 1961 have been made.
ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler Forms that cater to a large number of small and medium taxpayers. Sahaj can be filed by an individual having income upto Rs. 50 lakh and who receives income from salary, one house property / other sources (interest etc.).
Similarly, Sugam can be filed by individuals, Hindu Undivided Families (HUFs) and firms (other than Limited Liability Partnerships (LLPs)) having total income upto Rs. 50 lakh and income from business and profession computed under the presumptive taxation provisions.
Individuals and HUFs not having income from business or profession (and not eligible for filing Sahaj) can file ITR-2 while those having income from business or profession can file ITR Form 3.
Persons other than individual, HUF and companies i.e. partnership firm, LLP etc. can file ITR Form 5. Companies can file ITR Form 6. Trusts, political parties, charitable institutions etc. claiming exempt income under the Act can file ITR-7.
There is no change in the manner of filing ITR Forms as compared to last year.
CBDT has amended Rule 12 of the Income Tax Rules,1962 to incorporate the changes related to ITR forms for the AY 2021-22.
Rule 12 of Income Tax Rules, 1962 prescribes the manner of filing the income tax return in ITR.
The following amendments are notified for the ITR forms ITR-1 to ITR-7 for the AY 2021-22-
1. In Rule 12(1), the year ‘2021’ is replaced for the figure ‘2020’ to make the changes applicable for AY 2021-22.
2. This amended rule shall come into force with effect from the 1st day of April, 2021.
3. Two new Conditions have been added who cannot use ITR-1 (Sahaj). These are-
(i) ITR-1 cannot be used for return filing if the tax has been deducted under Section 194N. Thus, a person is ineligible to file his return of income in ITR-1 for AY 2021-22 if tax is deducted under section 194N.
(ii) Further, ITR-1 cannot be used for return filing if the tax has been deferred in respect of ESOPs allotted by an eligible start-up under sub-section (2) of section 191 or sub-section (1C) of section 192.
4. One new Condition is added who cannot use ITR-4 (Sugam). This is-
(i) ITR-4 cannot be used for return filing if the tax has been deferred in respect of ESOPs allotted by an eligible start-up under sub-section (2) of section 191 or sub-section (1C) of section 192.
5. New ITR Forms SAHAJ ITR-1, ITR-2, ITR-3, SUGAM ITR-4, ITR-5, ITR-6, ITR-7 and ITR-V have been substituted for the AY 2021-22.
Though ITR forms for the AY is notified no utility on the e-filing portal is yet given for online filing of the return.
Read the full text of Notification No. 21/2021 dated 31.03.2021 on New ITR forms for AY 2021-22
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 31st March, 2021
G.S.R. 242(E).-In exercise of the powers conferred by section 139 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend Income- tax Rules, 1962, namely:-
1. Short title and commencement.—(1) These rules may be called the Income-tax (7th Amendment) Rules, 2021.
(2) They shall come into force with effect from the 1st day of April, 2021.
2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), in rule 12, in sub-rule (1), ––
(a) in the opening portion, for the figure “2020”, the figure “2021” shall be substituted;
(b) in clause (a), in the proviso,––
(i) in sub-clause (v), the word “or” shall be omitted;
(ii) after sub-clause (vi), the following sub-clauses shall be inserted, namely:––
“(VII) is a person in whose case tax has been deducted under section 194N; or
(VIII) is a person in whose case payment or deduction of tax has been deferred under sub-section (2) of section 191 or sub-section (1C) of section 192;”;
(c) in clause (ca), in the proviso, after sub-clause (V), the following sub-clause shall be inserted, namely:—
“(VI) has income of the nature specified in clause (vi) of sub-section (2) of section 17 on which tax is payable or deductible, as the case may be, under sub-section (2) of section 191 or sub-section (1C) of section 192;.”
3. In the principal rules, in Appendix-II, for Forms SAHAJ ITR-1, ITR-2, ITR-3, SUGAM ITR-4, ITR-5, ITR-6, ITR-7 and ITR-V the following Forms shall, respectively, be substituted, namely:—
…..
[Notification No. 21/2021][ F.No. 370142/5/2021-TPL]
SHEFALI SINGH, Under Secy., Tax Policy and Legislation
Note:- The principal rules were published vide notification S.O. 969 (E), dated the 26th March, 1962 and last amended vide notification GSR 212(E), dated the 26th March, 2021.
Download Copy of Notification No. 21/2021 dated 31.03.2021 on New ITR forms for AY 2021-22 in pdf format
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