The Income Tax department has issued a common tax return form for all taxpayers by merging the existing forms except ITR-7. According to the Finance Ministry’s proposal, income from virtual digital assets will have to be declared under a separate head, Livemint said.
According to the Income Tax Department, all taxpayers except trusts and non-profit organizations can file their returns in the new format. The Central Board of Direct Taxes has asked for comments from stakeholders on the new format until December 15. Currently, taxpayers file their income tax returns from ITR-1 to ITR-7 by category.
The Finance Ministry said that the current ITR is a joint form with taxpayers to read all the schedules regardless of whether they are applicable or not. The new ITR will review the filing system as per international practice. As per the proposal, there will be a consolidated ITR made 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 joint ITR, as per their convenience.
Here is the proposed common ITR plan:
1. Basic information, gross income calculation schedule, tax calculation schedule, bank account details and tax payment schedule are available applied to all taxpayers.
2. Refunds are made specifically for all taxpayers with applicable schedules based on certain questions answered by them.
3. According to the statement of the ministry, these questions were made in such a way that if the answer is no, the other questions related to the question will not be shown to the taxpayer.
4. Added instructions to assist in filing returns. The proposed ITR is designed in such a way that each row does not contain a unique value.
5. The use of the income tax report will be published in such a way that only the applicable fields of the schedule will be visible and wherever necessary will appear more than once field combinations are enabled.