CBDT releases draft for public consultation; Confusion over right ITR form may end soon

As per the existing norms, the taxpayers have been using ITR Form-1 to ITR Form-7 for furnishing their financial details depending on their category.The confusion over choosing the right form while filing Income Tax Return (ITR) may end soon. In order to simplify the tax filing process the Central Board of Direct Taxes CBDT recently released a draft Common Income Tax Return Form for public consultation.The common ITR form, released on November 1, has been uploaded on the website of the Income Tax Department (www.incometaxindia.gov.in) for suggestions from stakeholders and the general public.As per the existing norms, the taxpayers have been using ITR Form-1 to ITR Form-7 for furnishing their financial details depending on their category.According to a CBDT release, the proposed draft takes a relook at the return filing system in tandem with internal best practices. CBDT proposes to introduce a common ITR form by merging all existing returns except ITR-7. However, the individual taxpayers can continue to choose between ITR-1 and ITR-4 or the proposed common ITR form. ITR-4 is used by the individuals, Hindu Undivided Families (HUF) and firms who have opted for presumptive income schemes.ITR-7 is used for filing returns by political parties, universities, charitable trusts and scientific research institutions, among others.According to CBDT, the new form will ease the process and decrease the time taken for filing ITR forms.The draft comprises 5 sections that deal with basic information, and the ITR is customised based on the taxpayers’ answers to questions. So, only the part where the answer is “yes” will be needed to be filled. The form is designed in a way that those replying “no” to any question will not receive linked questions. Every row in the form will have a distinct value only, which, CBDT said, aims to simplify the filing process.Read all the Latest News, Trending News, Cricket News, Bollywood News,India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.