The Central Board of Direct Taxes issued a notification allowing joint owners of a single house property to file income tax returns under Form-1 (Sahaj) or Form-4 (Sugam).(Yogendra Kumar/HT File Photo)
The Central Board of Direct Taxes issued a notification allowing joint owners of a single house property to file income tax returns under Form-1 (Sahaj) or Form-4 (Sugam).(Yogendra Kumar/HT File Photo)

Tax department lets joint property owners file returns using simple forms

The notification by the tax department came in the backdrop of users expressing concern over its January 3 order. The department had then said that individual taxpayers possessing a house property in joint ownership were not eligible to file returns through these two forms.
Hindustan Times, New Delhi | By HT Correspondent
UPDATED ON JAN 11, 2020 06:02 AM IST

The tax department has now made it simpler for joint property holders to file returns.

The Central Board of Direct Taxes issued a notification allowing joint owners of a single house property to file income tax returns under Form-1 (Sahaj) or Form-4 (Sugam).

The notification by the tax department came in the backdrop of users expressing concern over its January 3 order. The department had then said that individual taxpayers possessing a house property in joint ownership were not eligible to file returns through these two forms.

The CBDT had also debarred people who paid Rs 1 lakh in electricity bills in a year or incurred Rs 2 lakh expense on foreign travel from filing returns using the simple forms.

Such taxpayers were required to use different forms.

The tax department had then changed the eligibility conditions for filing of ITR-1 and ITR-4 Forms. The changes were modified “with an intent to keep these forms short and simple with a bare minimum number of Schedules. Therefore, a person who owns a property in joint ownership was not made eligible to file the ITR-1 or ITR-4 Forms”, the CBDT had said.

There were reservations over the changes and concerns that they would cause hardships for individual taxpayers.

The tax department said the matter has been examined and it has been decided to allow a person, who jointly owns a single house property, to file his/her return of income in ITR-1 or ITR-4 Form.

Returns under ITR-1(Sahaj) can be filed by an individual whose income doesn’t cross the threshold of Rs 50 lakh.

The ITR-4 (Sugam) can be used by an individual resident, Hindu undivided families and firms other than LLP (Limited Liability Partnership) earning an income of up to Rs 50 lakh and having a presumptive income from business and profession.

Presumptive income allows you to calculate tax on an estimated income or profit.

The government usually notifies forms for filing income tax returns in April every year. However, this time the CBDT notified the tax returns forms for 2020-21 in January itself.

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