CBDT unveils single ITR form for all taxpayers
Tags: Economy/Finance National News
The Central Board of Direct Taxes (CBDT) on 1 November has proposed a single income tax return (ITR) form for all taxpayers.
Important facts
All taxpayers, except trusts and non-profit organisations, can file returns with the proposed new common ITR form, on which the CBDT has invited stakeholder comments by 15 December.
Currently, taxpayers are required to furnish their income tax returns in ITR-1 to ITR-7, depending on the category.
What is Income Tax Return (ITR)?
ITR is a form which a person is supposed to submit to the Income Tax Department of India.
It contains information about the income of the individual during the year and the taxes to be paid on it.
Kinds of ITR forms
There are seven types of ITR forms, which are used by different categories of taxpayers.
ITR Form 1 - ALSO called ‘Sahaj’, is for small and medium taxpayers. Sahaj forms can be filed by individuals who have an income up to Rs 50 lakh, with earnings from salary, one house property/ other sources (interest etc).
ITR-2 - It is filed by people with income from residential property.
ITR-3 - It is intended for people who have income as profits from business/ profession.
ITR-4 (Sugam) - It is, like ITR-1 (Sahaj), a simple form, and can be filed by individuals, Hindu Undivided Families (HUFs) and firms with total income up to Rs 50 lakh from businesses and professions.
ITR-5 and 6 - These are for limited liability partnerships (LLPs) and businesses respectively.
ITR-7 - It is filed by trusts and non-profit organisations.
The changes that has been proposed
As per the proposal, all taxpayers, except trusts and non-profit organisations (ITR-7), will use a single ITR form, which will include a separate head for disclosure of income from virtual digital assets.
The current ITR-1 and ITR-4 will continue.
The purpose of the draft form is to make return filing easier, and save the time of individuals and non-business-type taxpayers.
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