The Income Tax department has notified forms for filing I-T returns for 2021-22 fiscal, which also seek details of income from overseas retirement benefit accounts from taxpayers.The Income Tax returns forms 1-5 have been notified by the Central Board of Direct Taxes (CBDT).
ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler forms that cater to a large number of small and medium taxpayers. Sahaj can be filed by an individual having income up to Rs 50 lakh and who receives income from salary, one house property and other sources (interest, etc). ITR-4 can be filed by individuals, HUFs and firms with total income up to Rs 50 lakh and having income from business and profession.
ITR-3 is filed by people having income as profits from business/ profession, while ITR-5 is filed by LLPs. While the ITR-1 form has been kept broadly the same as last year, the new addition to the form was the inclusion of income from a retirement benefit account maintained in a foreign country for the calculation of net salary.
It also seeks details on whether or not the said retirement benefit account was maintained in a notified country under section 89A of the I-T Act. Taxpayers can also claim relief from taxation under section 89A on this income. This will pave the way for the government technology team to develop Excel utility well in time, helping the taxpayers for early filings, AMRG & Associates Senior Partner Rajat Mohan said.