Income tax department proposes common ITR for all taxpayers
The ministry of finance said that the current ITRs are forms in which the taxpayer is asked to go through all the schedules irrespective of the fact whether that concerned schedule is applicable or not. The new ITR will relook the filing system as per the international practices.
The Income Tax department has proposed a common income tax return form for all the taxpayers by merging all the existing forms except ITR-7. According to the proposal by the ministry of finance, the income from virtual digital assets will have to be revealed under a separate head, Livemint reported.
According to the income tax department, all the taxpayers except the trusts and non-profit organisations can file their returns in the proposed new form. The Central Board of Direct Taxes has asked stakeholders for comments on the new form by December 15. At present, the taxpayers furnish their income tax returns in ITR-1 to ITR-7 as per the category.
The ministry of finance said that the current ITRs are forms in which the taxpayer is asked to go through all the schedules irrespective of the fact whether that concerned schedule is applicable or not. The new ITR will relook the filing system as per the international practices. As per the proposal, there will be a common ITR designed by merging all the existing returns except ITR-7.
However, the current ITR-1 and ITR-4 will continue. This will give an option to such taxpayers to file the return either in the existing form (ITR-1 or ITR-4), or the proposed common ITR, at their convenience.
Here's the scheme of the proposed common ITR:
1. The basic information, schedule for the computation of total income, schedule for the computation of tax, details of bank accounts and schedule for tax payments is applicable for all the taxpayers.
2. The Income Tax Return is customised for all the taxpayers with applicable schedules based on certain questions answered by them.
3. According to the ministry's statement, the questions have been designed in such a manner that if any answer is no, the other questions linked to the question won't be shown to the taxpayer.
4. The instructions have been added to assist the filing of the return. The proposed ITR has been designed in such a manner that each row contains one distinct value only.
5. The utility of the income tax return will be rolled out in such a manner that only the applicable fields of the schedule will be visible and wherever necessary, the set of fields will appear more than once.