New Delhi (The Hawk): The Central Board of Direct Taxes (CBDT) released a draught proposal to create a standard ITR form for all taxpayers on Tuesday in an effort to streamline the process of filing income tax returns (ITR).
All of the current ITR forms, with the exception of ITR 7, have been suggested for merger; however, ITR 1 and ITR 4 will continue to be used.
According to official sources, taxpayers will have a choice in the form they use to file returns under the CBDT's plan.
They could select either the current ITR 1 or ITR 4 forms or the planned common ITR form.
Currently, depending on the type of income and the taxpayer's legal classification, returns are submitted using ITRs 1 through 7.
"The present ITRs take the form of designated forms, and regardless of whether a given schedule is applicable or not, the taxpayer is obligated to read through all of them. This lengthens the ITR filing process, which could lead to avoidable problems for taxpayers "It was stated in a statement.
"In line with global best practises, the proposed draught ITR reexamines the return filing process. It suggests combining all current income tax returns—aside from ITR-7—to create a single, unified ITR. ITR-1 and ITR-4 will stay in place, nevertheless. Such taxpayers will then have the choice to file their returns in either the current forms (ITR-1 or ITR-4) or the proposed common ITR, depending on their convenience "It read.
(Inputs from Agencies)