Present ITR Forms
ITR 1 – Salary + IFOS + 1 HP
ITR 2 – Salary + HP + Capital Gain + IFOS
ITR 3 – Salary + HP + PGBP + Capital Gain + IFOS
ITR 4 – PGBP (Presumptive) + 1 HP + Capital Gain + IFOS
ITR 5 – LLPs & Firms
ITR 6 – Companies
ITR 7 – Assesses with Charitable Income
What is the Change?
ITR 1 – ITR 4 will continue
However ITR 5 & ITR 6 may be discontinued
No more confusion in choosing Forms
Feedback to be given by 15th December 2022
Annexure A – Draft Common ITR
Annexure B – Step by Step Approach to Filing
Annexure C – Customized Sample ITR for Firm
Annexure D – Customized Sample ITR for Company
Analysis of Common ITR Form…
1. Herein the schedules of basic information like the name of the taxpayer, Address, PAN No. etc will be pre-filled.
2. Schedules for computation of Total Income, Computation Schedule, Details of Bank A/c, Schedule for Tax Payment, will be applicable for all filers.
3. Certain wizard questions are to be answered by the taxpayer in the beginning and thereafter the form will automatically be customized for the filer.
4. The filer only needs to answer questions that apply to him and fill the schedules linked to those questions where the answer has been given as ‘yes’.
5. The filer just needs to fill only the relevant details asked through analysis of his or her own responses. Schedules which require information irrelevant to the filer are neither to be seen nor to be shown.
6A. For Eg. Incase you are a salaried Taxpayer with CG, Schedule for HP will not open at all
6B. Again incase you have CG on sale of shares u/s 112A, then only that part where CG on sales of shares taxable u/s 112A will open.
6C. Exempt Income Schedule will only open incase you tick that you have EI
7. At present the taxpayer is mandatorily required to go through all the schedules, irrespective of the fact whether that particular schedule is applicable or not. This increases the time taken to file the ITRs and in turn creates difficulties for taxpayers.
8. We have already seen the process of automatic cross checking of third party data in the AIS/TIS which have started recently or Form 26AS. The proposed common form also contains the facility wherein this data will be automatically uploaded in the Common ITR Form. Incase you need to amend it, then the same may be done.
9. This would be important especially for Taxpayers which would have to now reconcile all third party data including GST Data, Bank Data, Suppliers data, etc and then file their ITR. Incase of any differences auto generated notices may be received by the taxpayers.
10. We have already seen the process of automatic cross checking of third party data in the AIS/TIS which have started recently. The proposed common form also contains suitable reconciliation of third-party data available with the Income-tax Department vis-à-vis data to be reported in ITR. This would be important especially for businesses which would have to now reconcile all third party data including GST Data, Bank Data, Suppliers data, etc and then file their ITR. Incase of any differences auto generated notices may be received by the taxpayers.
Additional Details required –
A. Reconciliation of Difference between Books and GST Turnover
B. Bad Debts of more than Rs. 1 Lakh per debtor
C. Details of Interest on Loan Taken – Loanwise
D. Investments
E. Particulars like secured/unsecured loans/Inventories/etc even for those under presumptive Scheme
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