One Nation, One ITR Form

On 2nd November, 2022, the Central Board of Direct Taxes (CBDT), under the Finance Ministry, released a draft common ITR form on income tax return (ITR) form for all taxpayers.

  • Basically, there are seven kinds of ITR forms, which are used by different categories of taxpayers.

Objectives: The proposed draft ITR takes a relook at the return filing system in tandem with international best practices.

  • The draft form aims to make it easier to file returns, and to considerably reduce the time taken for the job by individuals and non-business-type taxpayers.

Expected Impact: Smart Design of Schedules: The changes are intended for the smart design of schedules in a user-friendly manner with a better arrangement, logical flow, and increased scope of pre-filling.

  • Proper Reconciliation of Third-Party Data: It will also facilitate the proper reconciliation of third-party data available with the Income-Tax department vis-à-vis the data to be reported in the ITR to reduce the compliance burden on the taxpayers.

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