What is the new update on simplification of ITR forms?
The number of pages for the new ITR forms have been reduced from 14 pages to 3 making it easier for income tax assessee’s to file their IT returns. As per the new rules, each assessee will be required to disclose only the passport number and the IFSC Code of active current or savings accounts. The Last date for filling returns has been extended till August 31 for the assessment year 2015-16.The new forms known as ITR 2 and ITR 2A will therefore consist of only 3 pages. Any other details that must be filled will have to be filled in schedules.
The new ITR Sahaj form is compressed into a single page. The ITR 2, ITR 2-A and ITR-3 forms have all been converted into one single form and renumbered as ITR 2. The ITR 4 and ITR 4s (Sugam) forms have been renumbered as ITR-3 and ITR 4 (Sugam).
The process and date of filing ITRs remain unchanged. All ITR forms would have a dedicated column seeking details of any cash deposit exceeding Rs. 2 lakhs during the demonetisation drive between November 9, 2016 and December 30, 2016. For those claiming Home Loan interest deductions under Section 80EE, there is a new field added in all ITR forms under Schedule VI-A.
While there have been changes in ITR forms, the process of filing tax returns remains unchanged. All individuals with income less than Rs. 5 lakhs without any refund claims can file their returns through electronically-filled out forms except for the ones who are 80 years of age and above.
Here is a list of various income tax return forms. You can choose the applicable form depending on your income type.
ITR 1 (Sahaj): For those earning income from salary, pension or property and other sources up to Rs. 50 lakh, the ITR 1 (Sahaj) form is applicable. ITR 1 (Sahaj) is now a simplified one page form with dedicated sections for deductions under Section 80c, 80D, 80G and 80TTA. Other deductions can simply be mentioned with the amount details.
ITR 2: Any individual or Hindu Undivided Family (HUF) with income from salary, house property, capital gains or other sources excluding lottery or race winnings can file for returns through ITR form 2. This form is not, however, applicable for the ones with business income.
ITR 3: What used to be called ITR 4 is now renamed as ITR 3. Effectively the form is applicable to any individual or HUF having income from proprietary business, salary or as a partner from a partnership firm.
ITR 4S Sugam: Individuals or HUFs with business or professional income with no foreign asset, income from one house property or capital gains can file for returns through ITR 4 (Sugam). The form is to be used for filing taxes using presumptive income method for business or profession.
You can download the ITR form from the IT department website. When in doubt, consult your tax planner or accountant.
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Income tax department in FY 2017-18 introduced lot of changes which make the form transparent and easy to understand both for the tax payee and department.