The Buyt Desk
To make the ITR filing process easy for taxpayers the finance ministry has proposed one common income tax return (ITR) for all. At present, taxpayers have seven types of options for filing ITR. The income tax department is planning to merge all seven types of ITR forms, filled by taxpayers for different categories in one, except the ITR-7 form. The intention of ITR department is to make ITR filing less time-taking and easy for taxpayers.
This move will also help taxpayers in saving money as they don’t have to take paid service for ITR filing. The Central Board of Direct Taxes (CBDT) is taking this move positively, however, experts in the industry have a different opinion to share. According to experts, frequent changes in the ITR filing process and forms confuse people. Whilst taxpayers were already juggling between the old tax regime and the new one, the common ITR form for all will confuse them further. The income tax department had introduced a pre-fill option for taxpayers earlier and now comes the proposal to merge various forms into one.
Who Can File ITR Via This New Arrangement?
The option to file ITR via one common form will be available to all taxpayers except to non-profit organizations and trusts. The Central Board of Direct Taxes (CBDT) has even called for feedback from people using the new option to file ITR. The arrangement would become mandatory for taxpayer filing ITR-2 (ITR for capital gains) and ITR-3 (ITR for Business Returns) after it gets approved and implemented.
How Will One Common Form Help Tax Payers?
Though one common ITR form seems simple for taxpayers, for now, it is arduous as so many things have been introduced by CBDT lately, which sometimes confuses taxpayers. To avail of the benefit of these new arrangements, individuals have to be vigilant while choosing the options. However, as India is moving toward digitalization, we all should adapt to new technologies. Filing ITR automatically is one of them.
Seven Types of Income Tax Return
ITR-1 Form – It is the form called Sahaj. It is filed by an individual with income above 50 Lakhs, receiving income salary, one house property, and other sources.
ITR-2 Form – It is for people having income from residential property.
ITR-3 Form – It is for people earning income from the business profession.
ITR 4 Form – It caters to small and medium taxpayers.
ITR 5 Form – The form is for LLPs.
ITR 6 Form – It is filed by businesses respectively.
ITR 7 Form – It is for the trust.
