The CBDT on Tuesday 1st November, 2022 proposed to introduce a common ITR form merging all existing ITR forms except ITR-7.
As per CBDT the new common ITR form will be user friendly. Also CBDT proposed that the income from all virtual digital assets will have to be disclosed under a separate income head.
The new common ITR filing form can be used by all the taxpayers except the Non Profit making NGOs who will be required to file ITR-7 as usual.
The Central Board of Direct Taxes (CBDT) has invited the comments of stakeholder on above proposal by 15th December, 2022.
Presently a taxpayer has to choose the applicable Income Tax Return filing form between ITR-1 to ITR-7 depending upon his status and nature of activities being carried out.
In the statement issued CBDT has said that the current ITRs are in the form of designated forms wherein the taxpayer has to go through all the schedules irrespective of the fact that the schedule is applicable to him or not which make the Income Tax Return filing process more time consuming.
Further the ITR-1 and ITR-4 forms will still be available for taxpayers who may wish to choose between the new common ITR form or the former ITR-1 or ITR-4 as per his convenience.
The new common ITR form will be customized based on the few questions being answered by the taxpayer.