New Income Tax Return Forms

Press release notified the new Income Tax forms and notified that E-filing of Returns by Firms liable for Tax Audit u/s 44AB mandatory.



PRESS RELEASE



The Forms for Return of Income areassessment year specific. The CentralBoard of Direct Taxes have prepared following eight Return Forms for assessmentyear 2007-08 under a new series:-



(i) ITR-1 - return of income for Individuals having salary and interestincome and no other income.

(ii) ITR-2- return of income for Individuals andHUFs having income from any source except from business or profession.

(iii) ITR-3- return of income for Individuals andHUFs being partners in firms and not having proprietory business or profession.

(iv) ITR-4- return of income for Individuals andHUFs having proprietory business or profession.

(v) ITR-5- combined form for return of income andfringe benefits for Firms/AOP/BOI .

(vi) ITR-6- combined form for return of income andfringe benefits for Companies.

(vii) ITR-7- combined form for return of income andfringe benefits for Charitable / religious trusts, political parties and othernon- profit organizations.

(viii) ITR-8- stand alone form for return of fringebenefits for persons who are not liable to file return of income but are liableto file return of fringe benefits



2. All these Forms (except Form ITR-7)have been designed as annexure-less so as to make them amenable for electronicfiling.



3. Last year, electronic filing was madecompulsory for corporate tax-payers. E-filingof corporate returns has been a resounding success. Therefore, it is importantto carry forward this successful initiative. In the Budget Speech – 2007, the Finance Minister had announced thatelectronic filing of returns would be made mandatory for more categories oftaxpayers. Accordingly, for assessmentyear 2007-08, it would be mandatory for firms liable to tax audit under section44AB to file their returns electronically. Corporate taxpayers and such firms may either file their returnelectronicall y under digital signature or may transmit the data of the returnelectronicall y and thereafter submit a one page verification Form whichcontains a summary of the return transmitted electronically.



4. All other categories of taxpayers(other than charitable trusts, institutions, etc.) will have the option to filethe return in a paper form or electronically, as mentioned above, or in abar-coded return form.



5. Last year, the Government hadintroduced a cash flow statement for Individuals and HUFs. However, in responseto representations against the cash flow statement, the same has been withdrawn.Individua l and HUF taxpayers would now be required to furnish only informationwith regard to transactions which are reported through Annual InformationReturns (AIR).



6. The new forms will be available on theIncome Tax Department's website http://.incometaxin diaefiling. gov.in. Government proposes to take the views of the Institute of CharteredAccountant s of India on these forms. In the meanwhile taxpayers are advised tofamiliarize themselves with the new forms. The formal notification will be madeon 14.5.2007.



7. The Government would urge taxpayers touse the e-filing option, since it will help the Department to serve thembetter.