Income tax return forms for 2016-17 likely to be notified by early April
March, 26th 2016
The finance ministry is likely to notify by first week of April new income tax return forms for assessment year 2016-17 which will more or less be similar to the one that was filed by taxpayers last year.
As many as 93% of all individual taxpayers filed income tax returns online and the tax department has been working on simplification of the income tax return (ITR) forms.
According to people familiar with the matter, the tax department has been working on further simplification of ITR forms and the current year’s form will substantially be the same as that of last year’s.
“Current year’s form is likely to be notified by first week of April. The process of simplification is ongoing and efforts will be made to further simplify it in the next year,” a person with knowledge of the matter said.
The people said the tax department is likely to come out with a revised formula for computation of capital gains tax on sale of assets. The effort would be to help such taxpayer calculate tax liability without any outside support.
The income tax department had in June last year came out with a simplified tax return form for salaried people. Taxpayers were asked to disclose the total number of savings and current bank accounts held by them at any time during the previous year (excluding dormant accounts).
The form also had space to fill up the IFSC code of the bank and taxpayers were given an option to indicate their bank accounts in which they would want their refund credited. The ITR had also sought the Aadhaar number of taxpayers.
The tax department had come out with simplified ITR after experts raised objections to the initial 14-page form. The earlier forms sought details of bank accounts and foreign visits and following a controversy, the revenue department announced putting those forms on hold.