Simplified 1 Page ITR – No More Excuses on Filing

  • If you feel that Income Tax Return filing is a taxing task, you are not alone. For a layman, just the name is enough to induce shivers. The tax return filing season for F.Y. 2016-17 is on the horizon & the government has come up with a good news at the right time.
  • Do you remember that our Finance Minister had promised to introduce a simple one-page ITR form for tax filers? The form was expected to offer huge relief to taxpayers with income below Rs. 5 lakh. The recent news is even better than that. Now this one-page ITR form will make tax return filing simpler for a bigger chunk of taxpayers. Salaried individuals with income up to Rs. 50 lakh & having rental income from one house only will also be able to file their tax return easily with this one-page ITR.

Why has this step been taken?

  • There are several reasons why people find filing taxes daunting & boring. For most people, this is a once in a year activity. Income Tax rules also change every year. So, people tend to forget how they filed their taxes in the previous year. As a result, they have to learn everything all over again. This further leads to poor tax planning, unclaimed refunds & defective IT returns. A large number of people often skip this essential activity.
  • Some do so to escape taxes, some due to ignorance & some others due to the process being extremely complicated. If you look at the data issued by the Finance Ministry, you will understand how critical the situation is. Out of 290 million PAN card holders in our country, only 60 million filed tax returns last year. If you look at non-filers with potential tax liabilities, you will see that their numbers have been increasing year-on-year. From 1.22 million in 2013, the numbers inflated to 5.89 million in 2015. The Government wants to curb this unwanted growth of non-filers. Therefore, it has come up with this simplified ITR which should make tax filing easy for a majority of taxpayers like us.

Highlights of New Simplified one page ITR-1

  1. Field for gender removed
  2. Field for DOB removed
  3. Option to provide the secondary mobile number is removed
  4. Tax Status field (Tax payable/ Tax Refundable/ Nil Tax Balance) removed
  5. Earlier the form required you to provide Aadhar only if you have an Adhar number allotted to you. However, the new forms ask you to provide Aadhar number or even an Aadhar Enrollment number if you have applied.

    ITR1 Form
  6. Chapter VI-A deductions now has specific fields for 80C / 80D / 80G / 80TTA, other deduction to be stated separately

    ITR1 Form V1
  7. Surcharge field is removed as the forms are applicable for income up to Rs. 50 lakh only
  8. Under the “Part D – Computation of Tax Payable” you have to now club Advance Tax, Self-assessment Tax, TDS, TCS under “D11 – Total Tax Paid”

    ITR1 Form V2
  9. Under the field ‘Exempt Income’ you now need to provide the break-up under four categories,
    1. u/s 10(34)
    2. u/s 10(38)
    3. Agricultural Income less than Rs. 5000 and
    4. Others
    ITR1 Form V3
  10. The new form asks you to submit the details of cash deposited in each of your bank accounts during the period 09/11/2016 to 30/12/2016

    ITR1 Form V4
  11. Details of TRP-Tax return Preparer field is missing from the new form
  12. Schedule TDS-1 - TDS on Salary, Schedule TDS-2 – TDS on Income other than Salary and Schedule - TCS are now clubbed together in a single schedule “Schedule – TDS Details of TDS/TCS”
  13. Schedule AL for reporting asset and liability for persons with income in excess of Rs. 50 lakh is removed as this form is for taxpayers with income less than Rs. 50 lakh.

Blog Archive

Warning: mkdir(): No such file or directory in /home/bge9b4q3b1qk/public_html/munimji/academic/modules/mod_lca/cache.php on line 56

Warning: file_put_contents(/home/bge9b4q3b1qk/public_html/munimji/academic/cache/mod_lca/57e55f700d1772126b4bb8d207c1e29f.xml): failed to open stream: No such file or directory in /home/bge9b4q3b1qk/public_html/munimji/academic/modules/mod_lca/cache.php on line 57

Financial Management