THE GOVERNMENT HAS NOTIFIED SOME IMPORTANT POINTS ON NEW ITR FORMS.

There are a few key points to remember about the new ITR forms that the government has announced.

The Income Tax Return Forms (ITR Forms) for the Assessment Year 2021-22 have been released by the Central Board of Direct Taxes (CBDT).

Changes to the Current ITR Forms

In contrast to last year’s ITR Forms, no major improvements have been made to the ITR Forms. Only the bare minimum changes were introduced as a result of revisions to the Income-tax Act of 1961.

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This has been achieved in light of the current COVID pandemic crisis.

THE CBDT AMENDS RULE 6G AND REVISES TAX AUDIT FORM 3CD

Details about ITR Forms:
Easy ITR Forms to Make Doing Business Easier
  • Simpler ITR Forms 1 (Sahaj) and 4 (Sugam) are available for a significant number of small and medium taxpayers.
  • A person with income up to Rs. 50 lakh who receives income from salary, one house property, or other sources may file a Sahaj [ITR-1] (interest etc.).
  • Individuals, Hindu Undivided Families (HUFs), and companies (other than Limited Liability Partnerships (LLPs)) with total income up to Rs. 50 lakh and income from company and profession computed under the presumptive taxation provisions are entitled to file Sugam [ITR-4].
Other Forms
  • Individuals and HUFs without business or occupation income (and therefore not entitled to file Sahaj) can file ITR Form 2.
  • Individuals and HUFs with business or technical income will file ITR Form 3.
  • ITR Form 5 may be filed by individuals, HUFs, and companies such as partnership firms, LLPs, and so on.
  • ITR Form 6 may be filed by companies
  • ITR Form 7 may be filed by trusts, political parties, charitable organisations, and those who are seeking exempt profits under the Act.

Social Media Rumours on changing ITR forms rules are rejected by CBDT

  • 29 Jul 2019
  • ITR
  • Comments Off on Social Media Rumours on changing ITR forms rules are rejected by CBDT

The Central Board of Direct Taxes (CBDT) on Tuesday disproved reports in social media about changes being executed in ITR form2 and 3. The income tax division expressed that only the utility software has been refreshed which won’t hamper the filing of returns. Meantime, there were reports in social media that the tax payers were confronting difficulties in efiling of income tax return in ITR-2 and ITR3 for the financial year 2018-19 because of wide-scale alterations in the ITR form for the AY 2019-20

“No progressions have been made in any of the Income-tax return(ITR) forms including ITR-2 and ITR-3 since the warning made on April 1 2019, which is on the first day of the Assessment Year 2019-20,” CBDT said.

The income tax expert has explained that the software utility for e-filing of all the ITR forms has been published long back on second May and on tenth May 2019 separately. However, the software utility update is a dynamic procedure and is persistently taken up according to the input received from the clients/filers to ease their experience in electronic filing of returns.

Other than this, it has additionally explained that the updating of utility does not hamper filing of return as the taxpayers are permitted to file ITR utilizing the utility which is accessible by that time. Despite the fact that the utility is being updated routinely to give ease to taxpayers, the returns filed by utilizing the past version of utility will continue being substantial. It is relevant to express that the updation in the utility of ITR forms depends on feedback and basically went for facilitating the compliance burden of the tax payers by encouraging simpler e-filing. For example, this year, the advantage of pre-filling of return forms has been given dependent on the information given in the TDS statement.

This facility has been refreshed in the utility therefore. This would generously diminish the efforts of taxpayers in filling of return forms. It is emphasized that there are no changes in the mentioned ITR forms; just the utility has been updated to encourage the taxpayers. Hence, the affirmation that various changes have been made in ITR-2 and ITR-3 on July 11, 2019, does not give a correct picture.

For  more details or in case any queries, contact Certicom Consulting.