Winning Bizness Desk

Mumbai.There are indications of many changes coming from the government in the coming year and your income tax return form can also change to a great extent. The government has indicated that the government may reduce the number of forms for filing Income Tax Return (ITR) and thus this forms may change in the budget next year. There has been an increase of 26 percent in the tax collection of the government in the current financial year. In such a situation, now the government is going to pursue tax related reforms. It is expected that its beginning will be visible from the upcoming budget itself. To make the income tax return easier, the government can now make extensive improvements in its form.

Tax collection increased after Covid

After the Covid pandemic, the government took several measures to stop tax leakage. The advantage of this is that in 2022, both its direct and indirect tax collection has increased. At the same time, there are also signs of revival in the economy, due to which the government has made a plan to improve the tax system. In the coming days, the government can take more strict action against the tax evaders. At the same time, the government can make strict rules and regulations for online gaming to e-commerce and other online service providers. This is expected to increase his tax collection further.

Many other reforms are possible

Sources have said that the government may also make sweeping changes in the long-term capital gains tax structure in the coming year. In such a situation, the government can make a rule to bring equality in the holding period between the same type of asset category. At present, capital gains tax is levied at 10 per cent on shares held for more than a year. At the same time, the government imposes capital gains tax at the rate of 20 percent on the sale of immovable property and unlisted shares held for more than two years and debt instruments and jewelry held for more than three years.

Income tax limit may go up

Next year, some changes can also be made in the new tax system (New Income Tax). It is expected that the government wants to make the exemption-free tax regime more attractive for individual income tax payers. Tax officials are working on creating a common ITR form for most taxpayers. However, for individual taxpayers the forms (ITR-1 and 4) will continue. Taxpayers filing ITR-1 and ITR-4 will have the option to choose whether they want to file their tax returns out of the proposed common ITR form or the existing form.