The government on Friday notified a simpler, one-page form for filing income tax returns while making it mandatory to quote Aadhaar number and disclose bank deposits of more than Rs 2 lakh after demonetisation.
The Income Tax Return (ITR) Form-1 – or Sahaj – will replace the seven-page form, removing a plethora of columns on deductions from income claimed.
Currently, ITR-1 is for salaried employees, and ITR-2 by individuals and HUFs (Hindu Undivided Family) whose income does not include income from business.
The rationalised ITR will "reduce the compliance burden to a significant extent on the individual taxpayer," the Central Board of Direct Taxes (CBDT) said, adding that the move would benefit more than two crore taxpayers.
"Simultaneously, the number of ITR forms have been reduced from the existing nine to seven forms. The existing ITR Forms ITR-2, ITR-2A and ITR-3 have been rationalised and a single ITR-2 has been notified in place of these three forms," it said.
Consequently, ITR-4 and ITR-4S (Sugam) have been renumbered as ITR-3 and ITR-4 (Sugam), respectively.
However, where return is furnished in ITR-1 (Sahaj) or ITR-4 (Sugam), an individual of the age of 80 years or more, an individual or HUF whose income does not exceed Rs 5 lakh and who has not claimed any refund in the return of income, has an option to file return in paper form.
Also, ITR-4 (filed by Individuals & HUFs having income from a proprietary business or profession) will now be known as 'Sugam' and ITR-4S will be substituted.
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