The Central Board of Direct Taxes (CBDT) on Friday notified Income tax return (ITR) forms for the upcoming financial year (FY17-18).
CBDT in one of the major reforms, notified the designing of one page ITR form to simplify the process of tax filing. "This ITR Form-1(Sahaj) can be filed by an individual having income upto Rs 50 lakh and who is receiving income from salary one house property / other income (interest etc.)."
This will reduce the compliance burden to a significant extent on the individual tax payer. This initiative will benefit more than two crore tax-payers who will be eligible to file their return of income in this simplified Form, Ministry of Finance said in a release.
Moreover, the Ministry in the release said that number of ITR forms has also been reduced to seven as against the existing nine forms. The existing ITR Forms ITR-2, ITR-2A and ITR-3 have been rationalized and a single ITR-2 has been notified in place of these three forms. Consequently, ITR-4 and ITR-4S (Sugam) have been renumbered as ITR-3 and ITR-4 (Sugam) respectively.
Further, no changes have been made in the manner of filing the ITR Forms as compared to last year.
All these ITR Forms are to be filed electronically. However, where return is furnished in ITR-1 (Sahaj) or ITR-4 (Sugam), the following persons have an option to file return in paper form:-
(i) an individual of the age of 80 years or more at any time during the previous year; or
(ii) an individual or HUF whose income does not exceed five lakh rupees and who has not claimed any refund in the return of income.