Budget 2018: Filing Income Tax Returns (ITR) is a complex task but an essential one. The Modi government can make it less intricate in Finance Minister Arun Jaitley's upcoming Union Budget 2018.
Budget 2018: Filing Income Tax Returns (ITR) is a complex task but an essential one. The Modi government can make it less intricate in Finance Minister Arun Jaitley’s upcoming Union Budget 2018. Income tax filing is a mandatory exercise for people with income over Rs 2.5 lakh. However, an individual whose salary is within the Rs 2.5-lakh bracket should also file the returns as a handy document for any financial transaction in future. For individuals, whose salary is above Rs 5 lakh, it is mandatory to do an e-filing. Identifying the relevant form for yourself is one of the crucial and complicated steps of tax filing. The relevant tax forms for a salaried employee is ITR 1. Depending on your source of income, you can go for ITR 2, ITR 2A, Form 3, Form 4 and Form 4A. At present, we have different ITR forms for different assessees which make the filing of ITR a cumbersome task. “There should be a single form for all the assessees so that filing of return will be done in a simplified and effective manner,” the Institute of Chartered Accountants of India (ICAI) said.
The body has suggested that a single ITR form instead of ITR 1,2, 3,4, 5,6 and 7 should be prepared. “The common fields in all ITR can be clubbed and Income under the various heads of income is restricted in the form of Annexures,” the body said. ICAI has further said that the assessee should click and fill only the annexure which is relevant for him. “This would amount to simplification in the true sense,” the body said.
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Notably, the new ITR-1/Sahaj is a one-page form that simplifies the Income Tax Return filing process for salaried individuals. Only salaried taxpayers with an income of up to Rs 50 lakh can file their ITR with this form. Individuals earning pension income, income from one house property and income from other sources, excluding lottery income, can file their Income Tax returns with this form. The new form also simplifies parts relating to tax computation and deductions for easy compliance and includes only four columns for deductions under sections 80C, 80D, 80G, and 80TTA, along with an ‘others’ column.