The government notified a simplified Income Tax Return form for individuals, which will be available for filing ITR for Assessment Year 2017-18 from Saturday (April 1, 2017).
The move is aimed at encouraging more number of people to file returns. Currently, only 6 crore out of 29 crore persons holding permanent account number (PAN) file income returns.
Government announced that new Income Tax Return (ITR) Forms that require disclosure of details regarding bank accounts and foreign trips undertaken by an individual will be reconsidered, a move that comes after criticism from tax experts and others.
In a statement,the government had announced that people with salary and interest income will have to fill fewer columns as some of these have been clubbed in ITR1 form called ‘Sahaj’.
In the form for assessment year 2017-18, deductions claimed under different sections of Chapter VIA have been removed and only mostly used ones have been included, said Finance Ministry sources.
“Columns that will remain include those for claiming deductions under Section 80C, mediclaim (80D). Those individuals who want to show deductions under other heads can do so by selecting an option,”.
The government has done away with two forms ITR 2A (used by individuals & HUFs not having income from business or profession and capital gains and who do not hold foreign assets).
Post July 1, as per amendments to the Finance Bill 2017 as passed by the Lok Sabha, it would become mandatory for an assessee to provide the Aadhaar number or the number showing that he has applied for Aadhaar in the ITR.
People with an income of more than Rs 50 lakh per annum and who own luxury items like yacht, aircraft or valuable jewellery will continue to disclose these expensive assets with the income tax department in the ITRs.
The e-filing facility for ITR-1 is likely to be enabled from April 1 and ITRs can be filed till the stipulated deadline of July 31, said finance ministry sources.
At the time of filing the form, the taxpayer has to fill in his PAN, Aadhaar number, personal information and information on taxes paid, and TDS will be auto-filled in the form.
ITR 1-SAHAJ, 2 and 2A can be used by individual or Hindu Undivided Families whose income does not include income from business.
ITR 4S – SUGAM can be used by an individual or HUF whose income includes business income assessable on presumptive basis