Draft common Income-tax Return-request for inputs from stakeholders and the general public- reg.

F No 370133/16/2022-TPL
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Direct Taxes)

New Delhi, 1st November, 2022

Sub: Draft common Income-tax Return-request for inputs from stakeholders and the
general public- reg.
Presently, taxpayers are required to furnish their Income-tax returns in ITR-1 to ITR-7
depending upon the type of person and nature of income. The current ITRs are in the form of
designated forms wherein the taxpayer is mandatorily required to go through all the
schedules, irrespective of the fact whether that particular schedule is applicable or not. This
increases the time taken to file the ITRs and in turn may create avoidable difficulties for
2. The proposed draft ITR takes a relook at the return filing system in tandem with
international best practices. It proposes to introduce a common ITR by merging all the existing
returns of income except ITR-7. However, the current ITR-1 and ITR-4 will continue. This will
give an option to such taxpayers to file the return either in the existing form (ITR-1 or ITR-4)
or the proposed common ITR, at their convenience.
3. The draft ITR aims to bring ease of filing returns and reduce the time for filing the ITR
by individuals and non-business-type taxpayers considerably. The taxpayers will not be
required to see the schedules that do not apply to them. It intends the smart design of
schedules in a user-friendly manner with a better arrangement, logical flow, and increased
scope of pre-filling. It will also facilitate the proper reconciliation of third-party data available
with the Income-tax Department vis a vis the data to be reported in the ITR to reduce the
compliance burden on the taxpayers.
4. The scheme of the proposed common ITR is as follows:
(a) Basic information (comprising parts A to E), Schedule for computation of total
income (Schedule TI), Schedule for computation of tax (schedule TTI), Details
of bank accounts, and a schedule for the tax payments (schedule TXP) is
applicable for all the taxpayers.
(b) The ITR is customized for the taxpayers with applicable schedules based on
certain questions answered by the taxpayers (wizard questions).
(c) The questions have been designed in such a manner and order that if the
answer to any question is ‘no’, the other questions linked to this question will
not be shown to him.
(d) Instructions have been added to assist the filing of the return containing the
directions regarding the applicable schedules.
(e) The proposed ITR has been designed in such a manner that each row contains
one distinct value only. This will simplify the return filing process.
(f) The utility for the ITR will be rolled out in such a manner that only applicable
fields of the schedule will be visible and wherever necessary, the set of fields
will appear more than once. For example, in the case of more than one house
property, the schedule HP will be repeated for each property. Similarly, where
the taxpayer has capital gains from the sale of shares taxable under section
112A only, applicable fields of schedule CG, relating to 112A, shall be visible to
4.1. As evident from above, the taxpayer is required to answer questions which apply to
him and fill the schedules linked to those questions where the answer has been given as
‘yes’. As a result, the time and energy of the taxpayer will be saved and he will be relieved
of the additional burden of going through all the parts of the ITR as is the requirement under
the existing ITRs. This will increase ease of compliance.
5. The draft ITR, based on the above scheme, is enclosed in Annexure A. Further, a
sample ITR illustrating the step-by-step approach for filing the ITR in Annexure B and two
customized sample ITRs for the firm and company in Annexure C and Annexure D respectively
are also enclosed for illustrative purposes. Annexure A is a consolidated document containing
all the questions, schedules, and detailed instructions thereon. It is reiterated that only
relevant questions/schedules will apply to a taxpayer. Once the common ITR Form is notified,
after taking into account the inputs received from stakeholders, the online utility will be
released by the Income-tax Department. In such a utility, a customized ITR containing only
the applicable questions and schedules will be available to the taxpayer.
6. The inputs on the draft ITR may be sent electronically to the email address
dirtpl4@nic.in with a copy to dirtpl1@nic.in by 15th December 2022.

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