Income Tax Returns: CBDT proposes common form
IANS 02 November 2022
To simplify the process of filing income tax returns (ITR), the Central Board of Direct Taxes (CBDT) on Tuesday issued a draft proposal to introduce a common ITR form for all taxpayers.
It has suggested merging of all the existing ITR forms except ITR 7, though ITR 1 and ITR 4 will continue to remain in use.
Under the CBDT's proposal, taxpayers will have choice to choose the form for filing returns, official sources said.
They could either choose from the proposed common ITR form or the existing ITR 1 or ITR 4 forms.
As of now, returns are filed through ITR 1 to 7, depending on the nature of the income and the legal classification of the taxpayer.
"The current ITRs are in the form of designated forms wherein the taxpayer is mandatorily required to go through all the schedules, irrespective of the fact whether that particular schedule is applicable or not. This increases the time taken to file the ITRs and, in turn, may create avoidable difficulties for taxpayers," an official statement said.
"The proposed draft ITR takes a relook at the return filing system in tandem with international best practices. It proposes to introduce a common ITR by merging all the existing returns of income 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," it said.
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2 months ago
This continuous tinkering with the IT returns does not make things simpler, it complicates matters. As an individual filing returns on his own, I have found matters getting complicated every year. For example, the IT department does not recognise investments if made by credit card (such as insurance policies), they have to be through the bank account, why ? And any minor modifications for previous years cannot be made because the software has now changed and the new software does not allow those modifications. Why can't Income Tax freeze a software for atleast 3-4 years rather than 'simplify' it every year ?
3 months ago
god only what more complications will arise since still now lot of people are having issues which govt is turning a blind eye towards it.
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