The number of forms available for filing Income Tax Return may be reduced to improve taxpayers’ experience and reduce the time taken to file returns.
Riding on the back of 26 per cent growth in tax collection, the government is introducing the next set of reforms in tax administration by reducing the number of forms available for filing Income Tax Return (ITR) to improve the experience of taxpayers and reduce ready to do. Time taken to file return.
Clear signs of revival of the economy after the pandemic and government efforts to plug tax leakages have resulted in a jump in both direct and indirect tax collections in 2022.
Going forward, as it seeks to crack down on evaders, the government may also look at stricter norms for tax deductions for e-commerce and online service providers, apart from online gaming. Taxation of the digital economy, ensuring fair share of taxes to developing countries and global coordination for taxation of cryptocurrencies will be among the priority areas as India prepares to host the leaders of the G-20 countries next year.
Gross collections of direct taxes (before adjustment of refunds) till December 17 of the current financial year stood at ₹13.63 lakh crore, a growth of 26 per cent over the same period of 2021-22 on strong growth in advance tax payments and TDS deductions .
After adjusting for refunds, the net collection of tax on corporate and personal income has grown by nearly 20 per cent to Rs 11.35 lakh crore, which is nearly 80 per cent of the budget target for the full year. The tax authorities are working on a common ITR form for most taxpayers and will continue to have forms (ITR-1 and 4) for individual taxpayers.
Taxpayers filing ITR-1 and ITR-4 will get an option to choose which form they want while filing their tax return – the proposed common ITR form or the existing ones. Currently, there are 7 types of Income Tax Return (ITR) forms which are filed by different categories of taxpayers. The rising tax revenue provides relief to the government on the fiscal front as it more than makes up for the shortfall in the budgeted disinvestment target set for the current financial year.
This story has been published from a wire agency feed without modifications to the text.