In a bid to encourage individuals to file their tax returns on time, the Government of India will be introducing a single-page Income Tax (I-T) return form from April 1 for those who have annual salaried income up to Rs 50 lakh.
“This single-page Income Tax return form will be for those who have annual salaried income up to Rs 50 lakh, much higher than Rs 5-lakh limit proposed in the Union Budget,” Revenue Secretary Hasmukh Adhia told Business Standard.
Hasmukh further added this would only be for those with salaried and one house rent income.
Earlier when Finance Minister Arun Jaitley had announced 2017-18 Budget, he said, “To expand the tax net, I also plan to have a simple one-page form to be filed as I-T Return for the category of individuals having taxable income up to Rs 5 lakh, other than business income.”
At present, the Income Tax form which was simplified two years ago is of three pages.
According to the reports, there are 290 million PAN card holders but only 60 million return filers.
Important Points To Remember
- Among 7.6 million who declare annual income above Rs 5 lakh, 5.6 million are in the salaried class.
- For those with an annual income of over Rs 50 lakh and up to Rs 1 crore, a surcharge of 10 per cent will be imposed; 15 per cent for those over Rs 1 crore.
- Those who do not file I-T returns (ITRs), their dues are already taken through Tax Deduction at Source (TDS), which is 37 per cent of gross direct tax collection. Its contribution during 2015-16 was Rs 3.25 lakh crore, growth of 11.6 per cent over the previous financial year.
- Those who do not file their I-T returns on time will have to pay a penalty of up to Rs 10,000 from the 2018-19 Assessment Year. It will be Rs 5,000 if the return is furnished after the due date but on or before December 31 of the AY.
- While for the payers whos total income is not exceeding Rs 5 lakh, the fee for late return filing will be Rs 1,000.
- A person with an annual income up to Rs 5 lakh and filing return for the first time would not be subjected to any scrutiny in the first year unless there is any information with the department regarding high-value transactions.