One nation, one ITR form

The Central Board of Direct Taxes (CBDT) has proposed a single income tax return (ITR) form for all taxpayers, or “one nation, one ITR form”

There are seven kinds of income tax return (ITR) forms, which are used by different categories of taxpayers.

It is called ‘Sahaj’ for small and medium taxpayers.
Sahaj forms can be filed by individuals with an income up to Rs 50 lakh, with earnings from salary, one house property/ other sources.
ITR-2
People file it with income from residential property.
ITR-3
It is intended for people with income as profits from business/ profession.
ITR-4
ITR-4 (Sugam) is, like ITR-1 (Sahaj), a simple form, and can be filed by individuals, Hindu Undivided Families (HUFs) and firms with total incomes up to Rs 50 lakh from businesses and professions.
ITR-5 and 6
These are for limited liability partnerships (LLPs) and businesses, respectively.
ITR-7
Trusts and non-profit organisations file it.

According to the proposal, all taxpayers, barring trusts and non-profit organisations (ITR-7), will be able to use a common ITR form, which will include a separate head for disclosure of income from virtual digital assets.

The proposed draft ITR takes a relook at the return filing system in tandem with international best practices.
The draft form aims to make it easier to file returns and to considerably reduce the time taken for the job by individuals and non-business-type taxpayers.
User-friendly Schedules

The taxpayers will not be required to see the schedules that do not apply to them.
It intends the smart design of schedules in a user-friendly manner with a better arrangement, logical flow, and increased scope of pre-filling.
Proper Reconciliation
It will also facilitate the proper reconciliation of third-party data available with the Income-Tax department vis-à-vis the data reported in the ITR to reduce the compliance burden on the taxpayers.
Customised ITR

The proposed ITR form would be customised for taxpayers with applicable schedules based on specific questions answered by them.
Once the common ITR form is notified, after taking into account the inputs received from stakeholders, the online utility will be released by the Income Tax department.
A customised ITR containing only the applicable questions and schedules will be available to the taxpayer in such a utility.

The Central Board of Revenue, as the apex body of the Department charged with the administration of taxes, came into existence as a result of the Central Board of Revenue Act of 1924.
Initially, the Board was in charge of both direct and indirect taxes.
However, when the administration of taxes became too unwieldy for one Board to handle, the Board was split up into two, namely the Central Board of Direct Taxes and the Central Board of Excise and Customs in 1964.
This bifurcation was brought about by the constitution of two Boards of the Central Board of Revenue Act 1963.
Functions and Organisation

The Central Board of Direct Taxes is a statutory authority under the Central Board of Revenue Act 1963.
In their ex-officio capacity, the board’s officials also function as a Division of the Ministry dealing with matters relating to the levy and collection of direct taxes.
Composition
The Central Board of Direct Taxes consists of a Chairman and six Members.

Content Source: Indian Express