With a 26 percent increase in tax collection, the government is going to start the next round of reforms in tax administration. In this, the number of forms available for filing an Income Tax Return (ITR) can be reduced.
The move will bring convenience to the taxpayers and reduce the time it takes to file the returns. A jump in direct and indirect tax collection in 2022 shows a clear sign that the improvement is coming through the reforms of the economy brought about after the pandemic and the efforts to stop tax leakage.
Government to take strict action on tax evasion:
In the coming days, the government can act more strictly on the tax evaders. Along with this, apart from online gaming, stricter tax norms can also be considered for e-commerce and online service providers.
Tax offices are working on preparing a common ITR form for most taxpayers. However, individual taxpayers' forms (ITR-1 and 4) will continue. Taxpayers filing ITR-1 and ITR-4 can choose whether they want to file their tax returns out of the proposed normal ITR form or the existing form. Currently, there are seven types of ITR forms available for taxpayers with different series.
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Types of tax structures in India:
There are two types of options available in the current tax system of India. During the budget for the financial year 2020-21, Finance Minister Nirmala Sitharaman announced the new tax system.
In this way, two tax options are available and taxpayers can choose any one of them. There are many types of tax deduction options in the old tax regime. At the same time, most of these have been removed in the new structure.