Common ITR form for all taxpayers on anvil, IT dept invites stakeholder comments


PTI, Nov 2, 2022, 9:27 AM IST

Credit: iStock Photo

The finance ministry on Tuesday proposed to come out with a user-friendly common income tax return form for all taxpayers, under which income from virtual digital assets will have to be disclosed under a separate head.

All taxpayers, except trusts and non-profit organisations, can file returns with the proposed new common ITR form, on which the Central Board of Direct Taxes (CBDT) has invited stakeholder comments by December 15.

Currently, 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 cater to a large number of small and medium taxpayers. Sahaj can be filed by an individual having income up to Rs 50 lakh and who receives income from salary, one house property/other sources (interest etc).

ITR-4 can be filed by individuals, Hindu Undivided Families (HUFs) and firms with total income up to Rs 50 lakh and having income from business and profession.

ITR-2 is filed by people having income from residential property, ITR-3 by people having income as profits from business/ profession, ITR-5 and 6 by LLPs and businesses respectively, while ITR-7 is filed by trusts.

The CBDT, under the finance ministry, said that ITR-1 and 4 would continue, but individuals would also have the option to file returns of income in the common ITR form.

“It proposes to introduce a common ITR by merging all the existing returns of income except ITR-7. The draft ITR aims to bring ease of filing returns and reduce the time for filing the ITR by individuals and non-business-type taxpayers considerably,” the CBDT said.

The taxpayers will not be required to see the schedules that do not apply to them. It will have a smart design of schedules in a user-friendly manner with a better arrangement, logical flow, and increased scope of pre-filling.

“It will also facilitate the proper reconciliation of third-party data available with the Income-tax Department vis a vis the data to be reported in the ITR to reduce the compliance burden on the taxpayers,” the CBDT said.

The proposed ITR would be customised for the taxpayers with applicable schedules based on certain questions answered by them.

Once the common ITR form is notified, after taking into account the inputs received from stakeholders, the online utility will be released by the Income Tax Department.

“In such a utility, a customized ITR containing only the applicable questions and schedules will be available to the taxpayer,” the CBDT said.

Nangia Andersen LLP Partner Sandeep Jhunjhunwala said taxpayers filing return of income in Forms ITR-2, ITR-3, ITR-5 and ITR-6 would not have an option to file the old forms, once the new common form and related utility are notified.

“Contemporary reporting requirements such as pass-through income or loss under various heads, income from virtual digital assets, declaration and details of Business Connection, Permanent Establishment and Significant Economic Presence in India for non-residents and details of foreign equity and debt interest held remain key highlights of the new common ITR form,” Jhunjhunwala added.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

‘Viksit Bharat Young Leaders’ Dialogue’ to be held in Delhi on January 11-12: PM Modi

‘Viksit Bharat Young Leaders’ Dialogue’ to be held in Delhi on January 11-12: PM Modi

Chitradurga Renukaswamy Murder Case: Photos from crime scene implicate Actor Darshan and others

7 more arrested in Manipur for arson at legislators’ residences

A 4.45 billion-year-old crystal from Mars reveals the planet had water from the beginning

Not possible to even reach Everest base camp without guidance of Sherpas: actor Manisha Koirala

Ton-up Jaiswal takes India to 275/1 at lunch against Australia on day 3 of opening Test

Related Articles More

Air India Express increases flight operations from northeast destinations

Mcap of 8 of top-10 most-valued domestic firms jumps Rs 1.55 lakh cr; HDFC Bank, TCS sparkle

Myntra pilots foray into quick commerce with ‘M-Now’ in select locations of Bengaluru

Never entered into pact to operate airport in Kenya: Adani

None of Adani portfolio cos subject to any legal case: Group CFO on promoter indictment in US

MUST WATCH

Prakash Belawadi

Naxal Leader Vikram Gowda

Christmas Cake Fruit Mixing

DK Shivakumar

Rose Cultivation


Latest Additions

Air India Express increases flight operations from northeast destinations

‘Viksit Bharat Young Leaders’ Dialogue’ to be held in Delhi on January 11-12: PM Modi

All-party meet ahead of Parliament session underway, Cong demands discussion on Adani

‘Viksit Bharat Young Leaders’ Dialogue’ to be held in Delhi on January 11-12: PM Modi

Puri Jagannath temple administration urges ASI to start repair work of Ratna Bhandar

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.