Currently, there are seven forms i.e from ITR 1 to ITR 7, available for taxpayers to file their Income Tax Returns. The selections or applicability of forms depends upon the nature or type of Incomes the taxpayer is declaring and also by the type of Person filling the return.
The existing ITRs are designated forms where the taxpayer is compulsorily required to go through all the schedules, whether they are applicable or not, which not only make the forms look complex but all increases the time required to fill & file the respective A Guide for Income Tax Return Filing in Mumbai.
The proposed draft ITR released by the CBDT has taken a relook at the current return filing system in India in tandem with internationally accepted best practices. All About Due dates of Filing Income tax return (Assessment Year 2022-23) CBDT has proposed to introduce a single common ITR by merging all the existing income tax returns from ITR 1 to ITR 6 except ITR-7. CBDT is not planning to merge ITR 7 with the common utility.
However, the current two forms i.e ITR1 and ITR-4 will continue. This will give an option to such taxpayers who wants to file the income tax return either in the existing form (ITR-1 or ITR-4), or the proposed common ITR, as per their convenience. {Pro Tip: GST return filing services in Mumbai}
The Proposed draft of common Income Tax Return scheme is as follows:
- Basic information (comprising parts A to E), Schedule for computation of total income (Schedule TI), Schedule for computation of tax (schedule TTI), Details of bank accounts, and a schedule for the tax payments (schedule TXP) is applicable for all taxpayers.
- The ITR is customized for taxpayers with applicable schedules based on certain questions answered by the taxpayers (wizard questions).
- The questions have been designed in such a manner and order that if the answer to any question is ‘no’, the other questions linked to this question will not be shown to the taxpayer. off course, you can avail the Instant Tips On Income Tax Deductions That You Can Start Figuring Out Today from Taxzona blogs.
- Instructions have been added to assist the filing of the return containing the directions regarding the applicable schedules.
- The proposed ITR has been designed in such a manner that each row contains one distinct value only. This will simplify the return filing process.
- The utility for the ITR will be rolled out in such a manner that only applicable fields of the schedule will be visible and wherever necessary, the set of fields will appear more than once.”
It is very much clear from the above mentioned points that, the taxpayer will be required to answer only to those questions which are applicable to it and fill those schedules linked to those questions where the answer to these questions has been given as ‘yes’. This will increase ease of compliance and make the form more user friendly.
Once the common ITR Form is notified by the CBDT, after taking into account the inputs received from stakeholders or Taxpayers, the online utility of the same will be released by the Income-tax Department.
