New ITR types informed, information money remains above Rs2 lakh, Aadhaar mandatory

New Delhi: The income-tax division has informed a simple one-page tax-return type targeted at making it simpler for tax payers to computer file their yearly profits.
At the same time, the new type also requires tax payers to create additional disclosures-including compulsory connecting of tax profits with an person's Aadhaar number-which will help control tax evasion.
Not only will this create it simpler for 50% of the nation's 40 thousand tax payers and motivate more and more people to computer file their tax profits, the new reports will also motivate better conformity.
A news release released by the tax division says people making up to Rs50 lakh and having one home will need to computer file only a single-page taxes type called ITR-1 (Sahaj) for financial year 2016-17.
However, the division has required that the tax payer will have to reveal any money down payment above Rs2 lakh created during 9 Nov and 30 Dec as it goes to track instances where high-value money remains post-demonetization do not match with the benefits information of the tax payer.
Further, in line with the changes suggested to the income-tax Act, providing the Aadhaar variety or the Aadhaar enrolment variety in the income-tax come back type has been created compulsory.
The tax division has also rationalized various content pertaining to tax calculations and reductions for easy conformity.
"This will reduce the conformity pressure to a significant extent on the personal tax payer. This effort will benefit more than two crore tax payers who will be eligible to computer file their come back of revenue in this simple type," said the income-tax division in a declaration.
However, tax payers who have more than one home will have to computer file a much more specific ITR-2.
The variety of income-tax come back forms have also been reduced from the current nine to seven. Further, only those people above the age of 80 years or whose earnings does not surpass Rs5 lakh and have not stated any return of revenue tax will be able to computer file document profits.
Earlier, tax payers processing ITR-1 and ITR-2 could computer file document profits and claim a return.
Also, the tax division has now created it compulsory to report excused long-term capital benefits in the taxes form; results earnings also has to be revealed.
"The govt has moved focus to those making more than Rs50 lakh and having earnings from sources other than wage with multiple owning a home. Income-tax come back processing will be specific for them. Besides, govt entities has kept up the strength on initiatives of demonetization," said Archit Gupta, creator and CEO of ClearTax, a website which helps people computer file tax profits.
Around 37 thousand people registered their income-tax profits in 2015-16, of which 9.9 thousand revealed yearly earnings below the exception to this rule limit of Rs2.5 lakh, 19.5 thousand revealed an yearly earnings between Rs2.5 lakh and Rs5 lakh, 5.2 thousand revealed earnings between Rs5 lakh and Rs10 lakh and only 2.4 thousand people revealed earnings above Rs10 lakh, according to the tax division.
Further, only 172,000 people revealed earnings above Rs50 lakh in the entire nation. A majority of the personal assessees confirming earnings above Rs5 lakh were from the paid class.