Currently, there are seven forms i.e from ITR 1 to ITR 7, available for taxpayers to file their Income Tax Returns. The selections or applicability of forms depends upon the nature or type of Incomes the taxpayer is declaring and also by the type of Person filling the return.
The existing ITRs are designated forms where the taxpayer is compulsorily required to go through all the schedules, whether they are applicable or not, which not only make the forms look complex but all increases the time required to fill & file the respective A Guide for Income Tax Return Filing in Mumbai.
The proposed draft ITR released by the CBDT has taken a relook at the current return filing system in India in tandem with internationally accepted best practices. All About Due dates of Filing Income tax return (Assessment Year 2022-23) CBDT has proposed to introduce a single common ITR by merging all the existing income tax returns from ITR 1 to ITR 6 except ITR-7. CBDT is not planning to merge ITR 7 with the common utility.
However, the current two forms i.e ITR1 and ITR-4 will continue. This will give an option to such taxpayers who wants to file the income tax return either in the existing form (ITR-1 or ITR-4), or the proposed common ITR, as per their convenience. {Pro Tip: GST return filing services in Mumbai}
