In a move to encourage more number of people to file Income Tax returns, the Finance Ministry will introduce simplified form for salaried individuals from April 1, 2017, reports PTI.
Individuals with salary and interest income will have to fill fewer columns as some of these for claiming income deductions have been clubbed in ITR-1 form called ‘Sahaj’.
In the form for assessment year 2017-18, deductions claimed under different sections of Chapter VIA have been removed and only mostly used ones have been included, said Finance Ministry sources.
“Columns that will remain include those for claiming deductions under Section 80C, mediclaim (80D). Those individuals who want to show deductions under other heads can do so by selecting an option,” .
Currently, the ITR-1/Sahaj has 18 different columns for claiming deductions under Section 80 of the Income Tax Act. Under Section 80C, a deduction of Rs 1.5 lakh can be claimed from total income for investments in LIC, PPF and repayment of housing loan. Section 80D provides for tax deduction from the total taxable income for the payment of medical insurance premium. This deduction is over and above the deduction under Section 80C.
“The forms would likely to be notified by the end of march.
People with an income of more than Rs 50 lakh per annum and who own luxury items like yacht, aircraft or valuable jewellery will continue to disclose these expensive assets with the income tax department in the ITRs.
The e-filing facility for ITR-1 is likely to be enabled from April 1 and ITRs can be filed till the stipulated deadline of July 31, said finance ministry sources.
At the time of filing the form, the taxpayer has to fill in his PAN, Aadhaar number, personal information and information on taxes paid, and TDS will be auto-filled in the form.
