The Finance Ministry on Tuesday proposed to bring a uniform Income Tax Return (ITR) form for all taxpayers, in which there will also be a provision for filing income from digital assets separately.
New Delhi: There is very important news for those who file ITR. The Finance Ministry on Tuesday proposed to bring a uniform Income Tax Return (ITR) form for all taxpayers, in which there will also be a provision for filing income from digital assets separately.
What did the finance ministry say
The Central Board of Direct Taxes (CBDT), which comes under the Finance Ministry, issued a statement saying that except for trusts and non-profit organizations, all other taxpayers can submit their returns through this proposed new ITR form. Comments have been invited from stakeholders on this new form by 15th December.
Currently , ITR is deposited through different forms.
At present, small and medium taxpayers submit income tax returns through ITR Form 1 (Sahaj) and ITR Form 4 (Sugam). ITR Form 1 can be used by individuals with annual salary income up to Rs 50 lakh, ITR Form 4 is prescribed for individuals, Hindu Undivided Families and firms with income up to Rs 50 lakh.
Who can use ITR Form 2 and ITR Form 3
ITR-2 form can be used by people earning income from residential property while ITR-3 form is for people earning profit from business and profession. Forms ITR-5 and 6 are specified for Limited Liability Partnerships (LLPs) and businesses while ITR-7 forms can be used by trusts.
What did CBDT say
CBDT, the regulatory body of the Income Tax Department, said that ITR-1 and ITR-4 will continue to remain so, but individual taxpayers will have the option to submit returns through this common ITR form as well. CBDT said, “It is proposed to bring a common ITR form by merging all the return forms except ITR-7 form. The new ITR is aimed at facilitating and reducing the time taken for filing returns for individuals and non-business taxpayers.” have to reduce.”
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.