In relief to tax-payers, 2 more ITR forms will be pre-filled from FY21
August, 26th 2019
Two more forms for filing Income-Tax Returns (ITR) will be pre-filled from the next financial year (FY21), which will provide relief to taxpayers who do not seek external assistance. The government has introduced pre-filled first Income-Tax Return form (ITR 1) from this fiscal.
“ITR2 and ITR 3 will be pre-filled from next year,” Revenue Secretary Ajay Bhushan Pandey told BusinessLine, adding that the Tax Department is providing informative assistance to facilitate taxpayers.
There are seven forms for Income-Tax Return (ITR), of which three – ITR 1, ITR 2 and ITR 3 – are for individuals and Hindu Undivided Family (HUF).
ITR 1 is for salaried individuals, those with one house property, other income sources (interest), and a total income of up to ?50 lakh. ITR 2 is for individuals and HUFs that do not carry out a business or profession under any proprietorship. ITR 3 is for individuals and HUFs gaining income from a proprietary business or profession.
Pandey explained that pre-filling pertains to the information regarding interest earned through bank account(s), capital gains from sale transaction of shares and mutual funds, and details about transactions regarding property. All these will be pre-filled at the time of filing the Income-Tax Return.
However, if an assessee wants to correct the information, he will be permitted to do so, said Pandey, adding that such information will be directly informed from banks and other financial intermediaries. He said discussion is on with the RBI and SEBI, besides registrars attached to State governments.
During financial year 2018-19, more than 6.68-crore returns were filed electronically, of which, 3.17-crore were ITR 1, while ITR 2 and ITR 3 numbers were at 45.27 lakh and 1.25 crore, respectively.
The last date to file ITR 1 and ITR 2 for assessment year 2019-20 (fiscal year 2018-19) is August 31, while for ITR 3 it is September 30. Filing after due date will invite penalty.
New measures launched Pandey also mentioned that many more measures to improve tax administration were approved by Finance Minister Nirmala Sitharaman last week.
Among these, faceless scrutiny is one of the most important measure, which will be implemented from October 8.
The cases selected for scrutiny will be allocated to assessment units in a random manner and notices issued electronically by a central cell without disclosing the name, designation, or location of the assessing officer.
Another important measure is related to Document Identification Number (DIN) to address complaints of harassment on account of issue of notices, summons, and orders by certain Income-Tax authorities.
From October 1, all notices, summons, orders by I-T authorities will be issued through a centralised computer system, and will contain a computer-generated unique DIN.
Any communication issued without DIN will not be legally valid.