The Central Board of Direct Taxes (CBDT) has notified new income tax return forms ITR-1 to ITR-7 for the assessment year 2021-22, the ministry of finance said in a release on 1 April.
Keeping in view the ongoing COVID-19 crisis and to facilitate the taxpayers, no significant change has been made to the ITR forms in comparison to the last year’s ITR forms. Only the bare minimum changes necessitated due to amendments in the Income-tax Act, 1961 have been made.
The taxpayers will now have dedicated space in each of the ITR forms namely Sahaj (ITR-1), Form ITR-2, Form ITR-3, Form ITR-4 (Sugam), Form ITR-5, Form ITR-6, Form ITR-7, and Form ITR-V to describe their investments.
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/other sources (interest, etc.)
Sugam can be filed by individuals, Hindu Undivided Families (HUFs), and firms (other than Limited Liability Partnerships (LLPs)) having total income upto Rs. 50 lakh and income from business and profession computed under the presumptive taxation provisions, the statement mentioned. Both the ITR forms are however not meant for individuals who are either director in a company or have invested in unlisted equity shares.
Individuals and HUFs not having income from business or profession (and not eligible for filing Sahaj) can file ITR-2.
Those having income from business or profession can file ITR Form 3.
Persons other than an individual, HUF, and companies i.e. partnership firm, Limited Liability Partnerships (LLP), etc. can file ITR Form 5.
The Companies can file ITR Form 6. Trusts, political parties, charitable institutions, etc. claiming exempt income under the Act can file ITR-7.