Authorities have introduced ITR-1 or Sahaj form for individual tax payers who earn not more than Rs 50 lakh.
Mumbai: The income tax department like previous occasions has brought about many changes in the annual tax filing exercise this year also. For many, the tax filing has been quite a cumbersome practice. To make things easier for tax payers, the I-T department has effected following changes:
1) Linking of Aadhaar with PAN has been made mandatory for both taxpayers and those who do not fall under the ambit of income tax. Earlier, only PAN was required to file tax returns. From this year, a taxpayer will have to quote their Aadhaar number also.
2) Income tax department has introduced a single-page, much more simplified ITR-1 or Sahaj form for individual taxpayers whose income does not surpass Rs 50 lakh a year. This form is also for those who receive income from one-house property and other sources like interest income.
3) ITR-2 is for individual taxpayers and Hindu Undivided Families who do not carry out a business or are part of a profession. ITR-2 was made by merging erstwhile ITR-2, ITR-2A and ITR-3.
4) ITR-3 is also for individual taxpayers and HUFs but this category is for those taxpayers who earn their income from a proprietary business or are part of a profession. This is not the case for ITR-2. This form has taken the place of ITR-4 that was applicable till last assessment year.
5) ITR-4 or Sugam form is for presumptive income from business and profession, according to an article in The Economic Times. This form has taken the place of ITR 4S or Sugam earlier used for filing returns during 2015-16 assessment year.