CBDT: Comments invited from stakeholders on the new form by 15th December. At present, income tax returns are filed through ITR Form-1 and ITR Form-4 for small and medium taxpayers.
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.
Comments invited by 15 December
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 for those with income up to 50 lakhs
The Sahaj form can be used by an individual with an annual salary income of up to Rs 50 lakh, while the Sugam form is prescribed for individuals with an income up to Rs 50 lakh, Hindu Undivided Families and firms. 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
Forms ITR-5 and 6 are specified for Limited Liability Partnerships (LLPs) and businesses while ITR-7 forms 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.
Department will give information about online usage
The 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.
Sandeep Jhunjhunwala, partner, Nangia Andersen LLP, said that after the introduction of the new form, taxpayers who have filed returns through ITR-2, 3, 5 and 6 forms will no longer have the option of the old form.
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