Govt notifies tax return forms with a few tweaks
The tax department has been stepping up disclosure requirements in return forms steadily to make assessments more effective and to reduce the number of cases taken up for scrutiny
The Central Board of Direct Taxes (CBDT) has notified new income tax return forms for this assessment year with minimal changes, said an official statement.
Keeping in view the ongoing crisis due to the covid-19 pandemic and to facilitate taxpayers, no significant change has been made to the income-tax return forms for the 2021-22 assessment year in comparison to last year’s forms, CBDT said.
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Only the bare minimum changes necessitated due to amendments to the Income-tax Act have been made, the tax policy-making body said.
The tax department has been stepping up disclosure requirements in return forms steadily to make assessments more effective and to reduce the number of cases taken up for scrutiny. Along with this, it has also scaled up information gathering about transactions in the economy from various institutions and agencies to make sure that income or gain from transactions that are not reported by assessees do not escape taxation. Over the last few years, it has also scaled up the scope of Form 26 AS, the tax credit statement in which transactions of taxpayers get captured. This also works as a reminder to assessees at the time of return filing not to miss any taxable income from calculations.
Return Form 1, called Sahaj, and Form 4, Sugam, are simpler forms meant for a large number of small and medium taxpayers. Sahaj can be used by individuals with income up to ₹50 lakh from salary, one house property and other sources like interest payments.
Sugam is meant for individuals, Hindu Undivided Families (HUFs) and firms other than Limited Liability Partnerships having income up to ₹50 lakh from business and profession computed on a presumptive basis.
Individuals not having income from business or profession can file return Form 2, while those having income from business or profession can use return Form 3.
Partnership firms and LLPs can file Form 5, while companies can file returns in Form 6. Trusts, political parties and charitable institutions claiming tax-exempt income can file returns in Form 7.
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