Personal Finance

Govt notifies income tax forms for Assessment year 2021-22

The Central Board of Direct Taxes Thursday notified income tax return forms for the assessment year 2021-22 with no significant changes, keeping in view the ongoing Covid pandemic crisis.

The forms will provide taxpayers the chance to opt for filing returns under the new tax regime – which excludes all exemptions and deductions while giving flat rates of income tax – and the existing tax regime.

“Only the bare minimum changes necessitated due to amendments in the Income-tax Act, 1961 have been made,” CBDT said in the notification issued Thursday.

The Board said that keeping in view the ongoing crisis due to COVID pandemic and to facilitate the taxpayers, no significant changes have been made to the ITR Forms in comparison to last year’s ITR Forms.

“Besides the choice between the regimes, taxpayers need to report quarterly dividend income earned in FY 2020-21 in order to comply with advance tax provisions similar to how advance tax is calculated and paid on capital gains,” said Archit Gupta, chief executive officer of Cleartax, a portal used for tax filing.

ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler Forms that cater to a large number of small and medium taxpayers. Sahaj can be filed by an individual having income upto Rs. 50 lakh and who receives income from salary, one house property or other sources. These forms include declaration of bank deposits of more than Rs 1 crore, expenditure of over Rs 2 lakh in foreign travel and expenditure on electricity bills of more than Rs 1 lakh in the previous year.

Similarly, Sugam can be filed by individuals, Hindu Undivided Families (HUFs) and firms other than limited liability partnerships having total income upto Rs. 50 lakh and income from business and profession computed under the presumptive taxation provisions.

Individuals and HUFs not having income from business or profession (and not eligible for filing Sahaj) can file ITR-2 while those having income from business or profession can file ITR Form 3. Persons other than individual, HUF and companies, which are partnership firms, LLPs can file ITR Form 5.

Companies can file ITR Form 6. Trusts, political parties, charitable institutions etc. claiming exempt income under the Act can file ITR-7.


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