ITR Filing: If you also file Income Tax Return (ITR) every year and are not able to understand the different forms, then this news is for you. Yes, the Finance Ministry has proposed to bring a common Income Tax Return (ITR) form for all taxpayers. The new form will have a provision for recording income from digital assets separately. With its arrival, taxpayers will get more convenience than ever before.
Inviting comments by December 15
The Central Board of Direct Taxes (CBDT) under the Finance Ministry 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 15th December. At present, an income tax return is filed through ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) for small and medium taxpayers.
Form 1
The Sahaj form can be used by individuals with an annual salary income. Up to Rs 50 lakh for individuals with income of up to Rs 50 lakh. While the Sugam form can be used for individuals with an income of up to Rs 50 lakh, as Hindu Undivided Families and firms is defined. The ITR-2 form is used by people earning income from residential property whereas the ITR-3 form is for people earning profit from business and profession.
ITR- 7 for Trust ITR-
Form 5 and Form 6 are specified for Limited Liability Partnerships (LLPs) and businesses whereas Form ITR-7 can be used by trusts. The CBDT said that ITR-1 and ITR-4 will remain applicable but individual taxpayers will have the option to submit returns through this common ITR form.
The department will provide information on online usage,
“It is proposed to bring a common ITR form by merging all the return forms except the ITR-7 form,” the CBDT said. The new ITR aims 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 filing returns through ITR-2, 3, 5, and 6 forms will no longer have the option of the old form.
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