ITR Filing: If you also file Income Tax Return (ITR) every year and if you do not understand the different forms, then this news is for you. Yes, the Finance Ministry has proposed to bring a uniform Income Tax Return (ITR) form for all the taxpayers.
In the new form, there will be a provision to enter the income from Digital Assets separately. With its arrival, there will be more convenience for the tax payers than before.
Inviting comments by December 15, the Central Board of Direct Taxes (CBDT) under the Ministry of Finance said in a statement that all taxpayers, except trusts and non-profit organizations, can submit their returns through this proposed new ITR form. Comments have been invited from stakeholders on the new form by December 15. At present, income tax returns are filed through ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) for small and medium taxpayers.
Form 1 Sahaj Form can be used by individuals with annual salary income up to Rs 50 lakh for individuals with income up to Rs 50 lakh, while Sugam Form can be used for individuals with income up to Rs 50 lakh, Hindu Undivided Families and firms prescribed Is. ITR-2 form is used by people earning income from residential property while ITR-3 form is for people earning profit from business and profession.
ITR- 7 for Trust ITR- 5 and Form 6 are specified for Limited Liability Partnership (LLP) and businesses whereas ITR-7 Form can be used by trusts. The CBDT said that ITR-1 and ITR-4 will continue to be in force but individual taxpayers will have the option to submit returns through this common ITR form.
The department will provide information on online usage,
CBDT said, “It is proposed to bring a common ITR form by merging all the return forms except ITR-7 form.” The objective of the new ITR is to facilitate and reduce the time taken for filing returns for individuals and non-business taxpayers. The CBDT said that this common ITR prepared on the basis of the suggestions received from all the stakeholders will be notified and the Income Tax Department will also inform about its online usage.
