One income tax form to rule them all: Centre’s proposal to simplify filing returns explained
FirstpostAccording to the finance ministry, the proposed form will be user-friendly with income from digital assets listed under a separate head. The CBDT, under the finance ministry, said that ITR-1 and 4 would continue, but individuals would also have the option to file returns of income in the common ITR form. Sujit Bangar, Ex-IRS officer and founder of Taxbuddy.com told Economic Times, “The CBDT has sought to release the single ITR form for all taxpayers irrespective of the type of person or the sources of income. It will be a great help to taxpayers, if sparsely used schedules like transfer pricing, rarely claimed deductions and provisions like clubbing are kept separately and finished with a single question asked in the beginning.” Nangia Andersen LLP partner Sandeep Jhunjhunwala said taxpayers filing return of income in Forms ITR-2, ITR-3, ITR-5 and ITR-6 would not have an option to file the old forms, once the new common form and related utility are notified. “Contemporary reporting requirements such as pass through income or loss under various heads, income from virtual digital assets, declaration and details of Business Connection, Permanent Establishment and Significant Economic Presence in India for non-residents, and details of foreign equity and debt interest held remain key highlights of the new common ITR form,” Jhunjhunwala added.