The Income Tax Department has informed the form for filing IT statements for fiscal 2021-22, which also obtains details of income from overseas retirement benefit accounts from taxpayers.
Income Tax return forms 1-5 have been notified by the Central Direct Taxation Board (CBDT).
ITR Form 1 (Only) and ITR Form 4 (Sugam) are simpler forms that cater to a large number of small and medium taxpayers.
Sahaj can be filed by individuals who have an income of up to Rs 50 lakh and who receive income from salary, property of one house and other sources (benefits, etc.). ITR-4 can be filed by individuals, HUFs and firms with total income up to Rs 50 lakh and having income from business and profession.
ITR-3 is filed by a person who has income as a profit from business/ profession, while ITR-5 is filed by LLP.
Although the ITR-1 form has been kept generally the same as last year, a new addition to the form is the entry of income from retirement benefit accounts maintained in a foreign country for the calculation of net salary.
It also obtains details on whether the retirement benefit account is maintained or not in the country notified under section 89A of the IT Act. Taxpayers can also claim tax relief under section 89A on this income.
This will pave the way for the government’s technology team to develop the Excel utility in a timely manner, assisting taxpayers for early filing, said AMRG & Associates Senior Partner Rajat Mohan.