CBDT unveils common ITR form for all Taxpayers

Introduction

Indian government proposes to introduce a new integrated Income Tax Return filing form, the draft of which has been put out by the CBDT recently. The new ITR form combines ITR-1 with ITR-6, except ITR-7, which is a separate form of ITR. However, the current ITR-1 to ITR-4 will also continue to be accessible for filing.

Central Board of Direct Taxes said that the combined form focuses on smart design, and analytical flow, and enlarges the scope of pre-filing. It will also enable reunited of third-party data available with the Income Tax Department vis-à-vis the data to be reported in the Income Tax Return to reduce the compliance burden for the taxpayers mentioned under the CBDT Circular notification. 

New ITR Form 

The new ITR Form means the common form which certainly aimed at making the filing of taxes, a simpler process, feels expert. The taxpayer will no longer be needed to worry about choosing the correct return form that applies to them.

Applicability of the unveils common ITR Form

It is expected that the proposed unveiled common ITR Form will be applicable from the Financial Year 2022-23 onwards. Central Board of Direct Taxes requested inputs on the proposed draft which will be sent by 15th December. 

Changes in the new Income Tax Return Form

Presently, The ITR form needs the taxpayers to mandatorily go through all the schedules. According to new ITR Forms, the taxpayers will need to answer a list of questions which is mentioned in the Yes or No format, and that is based o the replies, only the relevant schedules will open up for filing the ITR.

The primary information, schedule for computation of total income, schedule for computation of tax, and details of bank accounts apply to all taxpayers.

Changes impacting salaried individuals

Several proposed changes impacting salaried individuals in the new Common ITR form made by CBDT are highlighted by Tax Partners, People advisory, etc. which are as follows:

• Taxpayers require selecting whether they are claiming any benefit under the Tax treaty which is in India has with other Countries.

• A new disclosure needs to be introduced concerning investment in any firm or unincorporated entities.

• In Scheduled Salary- According to section 89A of the Income Tax Act, 1961, the benefits Account from Retirement, disclosure is essential for the received of Income and is taxable on relief during the previous year.

• In Schedule House Property- Where the taxpayer has taken a loan of a house and is claiming the deduction of interest paid on the loan and all details about the lender’s outstanding loan balance as of the last day of the F.Y. requires to be provided or given. Further, Further, Separate Data field has been presented to report interest for the pre-occupation period of the property.

• In Schedule Capital gains: - According to section 111A of the IT Act, 1961, The ISIN Code of share or unit sold also needs to be reported for short-term capital gains.  And Specific Disclosure is needed if the capital asset transferred was procured before 1st April 2001 or procured from a previous owner.

• In the Scheduled assets and liabilities: - Disclosure is essential for interest that is held in the assets of a firm or AOP as a partner or member who has been re-introduced.

Conclusion 

It concluded that the new ITR form combines ITR-1 with ITR-6, except ITR-7, which is a separate form of ITR. However, the current ITR-1 to ITR-4 will also continue to be accessible for filing. Central Board of Direct Taxes said that the combined form focuses on smart design, and analytical flow, and enlarges the scope of pre-filing. It is expected that the proposed unveiled common ITR Form will be applicable from the Financial Year 2022-23 onwards. According to new ITR Forms, the taxpayers will need to answer a list of questions which is mentioned in the Yes or No format, and that is based o the replies, only the relevant schedules will open up for filing the ITR. The primary information, schedule for computation of total income, schedule for computation of tax, and details of bank accounts apply to all taxpayers.

eStartIndia is one of the leading cloud-based platforms that help you to file your ITR (Income tax return) without any hassle at a very affordable cost.

Author:

Radhika Punani
Ambala
I am Radhika from Ambala city. I qualified LLM from Kurukshetra University and B.A.LLB from Maharishi Markandeshwar University