Income Tax Department has notified the forms for filing Income Tax Return for the financial year 2021-22. In these, information has been sought from taxpayers about income from foreign retirement benefit accounts. The Central Board of Direct Taxes (CBDT) has notified Income Tax Return Form 1-5. ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler forms. It caters to the needs of a large number of small and medium taxpayers. Sahaj Form can be filled by individuals with income up to Rs 50 lakh who receive income from salary, a house / other sources (interest etc.).
Whereas ITR-4 can be filed by individuals, Hindu Undivided Families (HUFs) and companies whose income from business and profession is up to Rs 50 lakh. ITR-3 can be filed by individuals who receive income in the form of profits from companies/professions. Whereas ITR-5 is filed by Limited Liability Partnership (LLP). ITR-1 is broadly the same as the previous year, except the new information sought is income from retirement benefit account in another country for computing net salary.
According to tax experts, the meaning of NOFID from ITR Form 1 to 6 has been explained
ITR Form 1 or Sahaj: It is for those earning individuals who are salaried and have no other income like long term capital gains etc and their annual income is less than Rs 50 lakhs.
ITR Form 2: This is for those who are salaried and whose income is from other sources but not from business. In other words, taxpayers other than business income category can file this ITR Form 2.
ITR Form 3: Those who have business income will file this form.
ITR Form 4 (Sugam) , It is meant for large business income group taxpayers who can give approximate figure of their annual turnover in this form.
ITR Form 5 : This is for taxpayers who earn from a partnership firm.
ITR Form 6 : This is for companies other than section 11 registered.
ITR Form 1 has been retained as before. Income from Overseas Retirement Benefit Accounts has been taken into account for computing net salary only. It also seeks details as to whether the said account is maintained in a notified country under section 89A of the IT Act. Taxpayers can also claim relief under section 89A on this income.
These rules of income tax also changed from 1st April – Apart from this, with the start of the new financial year from April 1, many rule changes have taken place. In which many changes related to income tax including crypto tax, revised TDS and TCS rates, ITR filing rules have come into force.
(Input with: PTI/Language)