Changes You Need To Know In The Annual Tax Filing Exercise This Year:- Like previous occasions, the Income Tax Department this year also has brought about many changes in the annual tax filing exercise. The tax filing has been quite a cumbersome practice for many. The I-T department has effected following changes, to make things easier for tax payers:
1) For both tax payers and those who do not fall under the range of income tax, the linking of Aadhaar with PAN has been made compulsory. Earlier, to file tax returns, only PAN was required. A taxpayer, from this year, will have to quote their Aadhaar number also.
2) A single-page, much more simplified ITR-1 or Sahaj form has been introduced by the Income tax department, for individual taxpayers whose income does not exceed Rs 50 lakh per year.
3) Individual taxpayers and Hindu Undivided Families who do not carry out a business or are part of a profession, are applicable for ITR-2. By merging erstwhile ITR-2, ITR-2A and ITR-3, the ITR-2 was made.
4) The ITR-3 is also for individual taxpayers and HUFs but this category is for those taxpayers who earn their income from a proprietary business or are part of a profession. This is not the case for ITR-2. This form has taken the place of ITR-4 that was applicable till last assessment year.
5) ITR-4 or Sugam form is for presumptive income from business and profession. This form has taken the place of ITR 4S or Sugam, which was earlier used for filing returns during 2015-16 assessment year.