The Central Board of Direct Taxes (CBDT) has proposed to introduce a common Income Tax Return (ITR) Form by merging all the existing Returns of Income Tax except ITR-7.
However, the current ITR-1 and ITR-4 Form will continue.
The New Form aims to bring ease of filing returns and reduce the time for filing the ITR by individuals and non-business-type taxpayers considerably.
Common ITR Form- Draft of a common form has been issued for filing income tax return. It is being claimed that after the implementation of this form, filing ITR will become much easier.
New Delhi. Filing Income Tax Return (ITR) is considered by almost all the income tax payers to be a difficult task. The biggest problem that a common income tax payer faces is choosing the right form for filing ITR. This is because at present there are 7 different forms for filing ITR. Out of these, the income tax payer has to choose a form for himself. To solve this problem of Income Taxpayer, the Central Board of Direct Taxes (CBDT) has proposed a Common ITR Form. Means same ITR form for all.
CBDT has invited suggestions from all concerned including common people by presenting the draft of Common ITR Form. Among the problems that are present with the ITR form, the big difficulty is that the form has to be selected on the basis of income profile and status. Due to this, taxpayers get confused while choosing the right form. Sometimes they even choose the wrong form. To solve all this, CBDT has moved towards implementing a common ITR form.
What is Common ITR Form?
CBDT intends to have a single form for filing ITR. When income tax payers login to fill ITR, they will see 1 ITR form. This is being called the Common ITR Form. A feature called Wizard has been added to this form. In the beginning, some questions will be asked in the form itself. The taxpayers will have to answer yes or no to them. The widget in which you will do yes, that option (utility) will open. If not, the options that are not for you will not be visible. More than 40 such questions will be in the form.
You will get the option
ITR-1, ITR-4 and ITR-7 forms will continue to exist even after the arrival of the common ITR form. CBD intended to be an option for income tax payers. Taxpayers will have the option to either use the existing form (ITR-1 or ITR-4) or the proposed common ITR form for filing ITR. Whereas, once the common ITR form comes, ITR-2, ITR-3, ITR-5 and ITR-6 forms will be abolished.
According to a report in Moneycontrol, Kuldeep Kumar, Partner, Waltrey Partners India says, “ITR-1 and ITR-4 are very simple forms. These do not require additional disclosures. ITR-7 form is for trust. This form is rarely used for filing returns.
Income Tax Payers Will Benefit
CBDT says that the purpose of introducing common ITR form is to simplify return filing and save time. In the new form, it will not be opened in front of the taxpayers as it is not of any use to them. In such a situation, where the income tax payer will be comfortable in filling ITR, his time will also be saved. Apart from this, the fear of choosing the wrong form will also end.
Now these forms are in vogue
ITR Form 1 : Known by this Sahaj name. People with income up to Rs 50 lakh can fill this form. This is for the income received from salary, house property or other sources.
ITR Form 2 : Those whose income includes income from residential property, they can fill this form.
ITR Form 3 : People who get income from business or profession have to fill it.
ITR Form 4: It is popularly known as Sugam. The Sugam form can be used by individuals, Hindu Undivided Families and firms with an income of up to Rs 50 lakh.
ITR Form 5 and 6: ITR Form 5 and 6 is to be filed by Limited Liability Partnership (LLP) and businesses.
ITR Form 7: ITR-7 form can be used by trusts and NGOs.
