The Finance Ministry on Tuesday released the draft Common ITR Form for all taxpayers. Under which income from virtual digital assets will have to be disclosed under a separate head.
The Finance Ministry on Tuesday released the draft Common ITR Form for all taxpayers. Under which income from virtual digital assets will have to be disclosed under a separate head. CBDT has sought opinion on the Common ITR Draft by December 15. With the introduction of this common ITR, people will be able to make tax filing easier.
According to CBDT, there will be a common form from ITR-1 to ITR-6. Only ITR-7 will be different. ITR-1, ITR-4 will also continue so that people can continue with the old ones. With the introduction of common ITR, it will be easier for people to file tax.
Presently there are 7 types of Income Tax Return (ITR) Forms At present, there are 7 types of Income Tax Return (ITR) Forms which are filed by different categories of taxpayers. ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler forms that are used by a large number of small and medium taxpayers. Sahaj can be filed by a person having income up to Rs 50 lakh, such income is derived from salary, house property / other sources (interest etc.).
On the other hand, ITR-4 can be filed by individuals, Hindu Undivided Families (HUFs) and firms whose total income is up to Rs 50 lakh and comes from business and profession. ITR-2 to be filed by people having income from residential property, ITR-3 to be filed by people earning income from business/profession, ITR-5 and 6 to be filed by LLPs and businessmen respectively, while ITR-7 to be filed by trusts goes.
Tax filing will be easier
The objective of the draft ITR is to bring ease in filing returns and significantly reduce the time taken for filing ITR by individuals and non-business type taxpayers. Taxpayers will not need to look for schedules that do not apply to them. It will have a smart design of the schedule in a user-friendly manner with better ordering, logical flow and increased scope of pre-filling.
Nangia Andersen LLP partner Sandeep Jhunjhunwala said that taxpayers filing income returns in Form ITR-2, ITR-3, ITR-5 and ITR-6 will not have the option of filing old forms.
