ITR Form: With 26 percent increase in tax collection, the government is going to start the next round of reforms in tax administration. In this, the number of forms available for filing Income Tax Return (ITR) can be reduced.
This change will bring convenience to the taxpayers and reduce the time taken for filing returns. There has been a jump in direct and indirect tax collection in 2022 due to clear signs of reform of the economy after the pandemic and government efforts to stop tax leakage.
Government will be strict on tax evasion
In the coming days, the government can act more strictly on the tax evaders. Along with this, apart from online gaming, stricter tax norms can also be considered for e-commerce and online service providers.
India will host G-20
India is ready to host the leaders of G-20 countries next year. Along with this, taxation in Digital Economy, ensuring fair share of tax to developing countries and taxation of Cryptocurrency will also be on the agenda.
Stocks are taxed long term
Rationalization of long term capital gains tax structure is also expected to bring uniformity in holding period among similar asset classes. Currently, long-term capital gains on shares held for more than a year are taxed at 10 per cent.
Tax system will change in the new year
Sale of immovable property and unlisted shares held for more than two years and debt equipment and jewelery held for more than three years attract long-term capital gains tax of 20 per cent. Some changes in the new tax system are expected to happen next year as well, as the government wants to make the system more attractive by freeing up individual taxpayers.
Taxpayers will get many options
Tax offices are working on preparing a common ITR form for most taxpayers. However, the forms (ITR-1 and 4) for individual taxpayers will continue. Taxpayers filing ITR-1 and ITR-4 will have the option to choose whether they want to file their tax returns out of the proposed normal ITR form or the existing form. Currently, there are seven types of ITR forms available for taxpayers with different series.
