NEW DELHI : Besides lowering tax outgo for several taxpayers, opting for the new income tax regime will have another advantage. The new personal income tax regime, with lower rates, is expected to be so simple that you will not require the help of a chartered accountant (CA) or any other professional from next year for filing of income tax return (ITR).
Riddled with various exemptions and deductions, the Income Tax Act makes it tough for most taxpayers to file ITR without professional help.
While introducing the new income tax regime, which will be optional for taxpayers, finance minister Nirmala Sitharaman had said in her Budget speech that ensuring compliance with income tax laws is a burdensome process by taxpayers currently. The new income tax regime not only simplifies the tax structure but also allows you to save taxes without making any investments or expenses like PPF and insurance policies to claim tax benefits.
Calculating tax and filling up ITR forms will also be easier as you do not have to get into the mathematics of deductions and exemptions.
Sitharaman has also announced that those opting for the new income tax slab rates will get a pre-filled ITR so that one can file returns without the assistance of an expert.
Revenue secretary Ajay Bhushan Pandey has clarified that from this April, when you will be able to file your ITR for FY 2019-20, all taxpayers will get a choice of selecting any of the two income tax regimes — one with all the deductions and exemptions and the other one without it.
Those opting for the new income tax slab rates will get an ITR form on the income tax department’s e-filing portal where most details will be pre-filled after which you can file your return easily and pay taxes if anything is due. “If you choose the old system, then only that form will open. It is easier to pre-fill the form under new tax structures,” Pandey said.
The I-T department has already released next year’s ITR-1 (Sahaj) form, meant for salaried individuals earning upto ₹50 lakh in a year, and ITR-4 (Sugam), meant for individuals, HUFs and firms (other than LLP) having total income upto ₹50 lakh.
Archit Gupta, founder and CEO of ClearTax, said a large number of taxpayers are unsure about how the new rules impact them and how to choose between the two income tax regimes. “So this making of choice will be more complex for them”