The Income Tax Department has submitted forms for filing IT returns for fiscal year 2021-22, which also request information about income from taxpayers’ foreign retirement accounts.
Income tax returns 1-5 have been submitted by the Central Board for Direct Taxes (CBDT).
ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler forms suitable for a large number of small and medium-sized taxpayers.
Sahaj can be filed by a person who has an income up to Rs 50 lakh and who receives income from salary, a house property and other sources (interest, etc.). ITR-4 can be filed by individuals, HUFs and corporations with a total income of up to Rs 50 lakh and having income from business and profession.
ITR-3 is filed by people who have income as business/occupation profits while ITR-5 is filed by LLPs.
While the ITR-1 form has been kept broadly the same as last year, the new addition to the form was the inclusion of income from a retirement benefit account abroad for the purpose of calculating net pay.
It also requests details as to whether or not the said retirement account was held in a notified country under Section 89A of the IT Act. Taxpayers can also claim exemption from tax under Section 89A on this income.
This will pave the way for the government’s technology team to develop Excel utility well in time, and help taxpayers with early filings, said AMRG & Associates Senior Partner Rajat Mohan.