Union Budget 2023 Finance Minister Nirmala Sitharaman To Unveil Common ITR Form In Budget 2023 Income Tax 2023 India

Budget 2023: Finance Minister Nirmala Sitharaman will present the budget on February 1, 2023, in which she can announce to start a big facility for taxpayers. In the upcoming budget, the Finance Minister may announce the facility of filing income tax returns through a single ITR form for all taxpayers. It is believed that taxpayers will be able to take advantage of this new facility from the income tax return to be filed for the assessment year 2024-25.

Announcement to bring common ITR form will be made in the budget

There is every possibility that in the budget of 2023-24, the Finance Minister may announce the introduction of a common ITR form. The Finance Ministry had sought suggestions from all stakeholders by December 15, 2022. At present, there are 7 types of ITR forms available for different categories of taxpayers. But the Finance Ministry now wants a single ITR form for all taxpayers. And it is believed that it can be started from the financial year 2023-24 and assessment year 2024-25. It is believed that except ITR-7, all other ITR forms will be merged with each other.

Ease of filling ITR for taxpayers

When the CBDT had presented the draft of Common ITR, it had said that while taxpayers would find it easier to file income tax returns through Common ITR, taxpayers and non-business type taxpayers would also save a lot of time in filing ITR. All taxpayers, except trusts and non-profit organizations, will be able to use the common ITR for filing income tax returns. CBDT had said that ITR-1 and ITR-4 will continue. But taxpayers will have the option to file income tax return through common ITR. However, after the notification is issued, taxpayers filing returns through ITR-2 and ITR-3 will be able to file ITR only through the common ITR form.

There are 7 types of ITR forms

Currently there are 7 types of ITR forms. Income tax return form number one is filed by taxpayers whose annual income is up to Rs 50 lakh. Apart from salary, the source of his income should be income from a property, income from interest, dividend income and income from agriculture up to Rs 5,000 annually. If there is capital gain on sale of assets like mutual funds, stocks or have more than one house property, then such taxpayers have to file ITR-2. Tax return form number 3 is for individuals and HUFs who have income from profits or gains from business. ATR Form No. 4 is also known as Sugam. Which is applicable to individuals and HUF (Hindu Undivided Family) whose total income from business and profession is up to Rs 50 lakh.

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