Are you wondering whether tax will be levied on his income or not or if that house is in the name of both husband and wife, then who will have to pay tax? If such questions are coming to your mind, then you are at the right place. Let us tell you about the rules related to tax on rental property.

Provisions have been made by the Income Tax Department for tax on rental income. First of all, tax has to be paid on rental income. But there are rules for this. If a husband and wife own a house and they get some fixed amount of rent on it. Then tax will be levied on them. According to Section 26 of the Income Tax Act, 1961, when a joint property (house) is owned by multiple people and their shares are fixed and clear, then the income from that property is calculated for tax in the name of each co-owner according to their share.

Can claim

At the same time, each co-owner can calculate the income of his share independently. They can also claim deductions like standard deduction under section 24 or interest on borrowed capital separately. This income has to be shown by each co-owner in his individual income tax return. This means that each one pays tax on the basis of his share, which ensures clarity and fairness in tax calculation. This rule ensures that the income of the joint property is divided properly.

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According to the news of livehindustan, now all the people earning from social media, YouTube, F&O trading, commission agency, betting or stock trading will have to enter a new code while filing ITR. Complete details of income will have to be given in Form ITR-3 or ITR-4. Actually, the Income Tax Department has made changes in Form ITR-3 or ITR-4. Five new professional codes have been included in these.

Know who are social media influencers

After the changes made by the Income Tax Department, a new code 16021 has been created for social media influencers. This is for those who earn money by promoting, advertising or creating digital content on social media. According to the income slab, they will have to fill ITR-3 or ITR-4 form. According to section 44ADA of Income Tax, ITR-4 form has to be filled to avail tax exemption on estimated income.

Understand the complete list of codes here

• Commission Agent – 09029
• Social Media Influencer – 16021
• Speculative Trading – 21009
• Futures Option Trader (F&O) – 21010
• Buying and Selling of Shares – 21011

Those who are stock market traders should know this

According to the news, a new code 21010 has been fixed for stock market traders (F&O). Such traders will have to give details of their income, profit and loss in Form-3. Earlier, taxpayers of this category used to file ITR in other categories. With the introduction of new codes, the categories of people earning in different ways will be decided. This will help the department to deal with those trying to save tax. It will become easier to keep an eye on professionals earning more.

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Draft Common ITR: There is big news for taxpayers filing Income Tax Return. The Central Board of Direct Taxes (CBDT) has released the draft Common ITR Form. With the introduction of common ITR , people will be able to make tax filing easier. CBDT has sought opinion on the Common ITR Draft by December 15.

Items to be pre-filled in the new Common ITR

According to CBDT, there will be a common form from ITR-1 to ITR-6. Only ITR-7 will be different. ITR-1, ITR-4 will also continue so that people can continue with the old ones. With the introduction of common ITR, it will be easier for people to file tax. There will be no need to look for schedules that are not applicable to them. In the new common ITR, more and more things will be pre-filled.

Based on the answers to some questions, the non-essential schedule will not come. CBDT has sought opinion on the draft common ITR by 15 December 2022.

Purpose of Draft ITR

The purpose of draft ITR is to bring ease in filing returns and significantly reduce the time taken by individual and non-business taxpayers to file ITR.

This will facilitate matching of third party data available with the Income Tax Department with the data to be reported in ITR to reduce the compliance burden on taxpayers. Currently, taxpayers are required to file their IT returns in ITR-1 to ITR-7 depending on the type of person and source of income.

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The Finance Ministry on Tuesday released the draft Common ITR Form for all taxpayers. Under which income from virtual digital assets will have to be disclosed under a separate head. CBDT has sought opinion on the Common ITR Draft by December 15. With the introduction of this common ITR, people will be able to make tax filing easier.

According to CBDT, there will be a common form from ITR-1 to ITR-6. Only ITR-7 will be different. ITR-1, ITR-4 will also continue so that people can continue with the old ones. With the introduction of common ITR, it will be easier for people to file tax.

Presently there are 7 types of Income Tax Return (ITR) Forms At present, there are 7 types of Income Tax Return (ITR) Forms which are filed by different categories of taxpayers. ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler forms that are used by a large number of small and medium taxpayers. Sahaj can be filed by a person having income up to Rs 50 lakh, such income is derived from salary, house property / other sources (interest etc.).

On the other hand, ITR-4 can be filed by individuals, Hindu Undivided Families (HUFs) and firms whose total income is up to Rs 50 lakh and comes from business and profession. ITR-2 to be filed by people having income from residential property, ITR-3 to be filed by people earning income from business/profession, ITR-5 and 6 to be filed by LLPs and businessmen respectively, while ITR-7 to be filed by trusts goes.

Tax filing will be easier

The objective of the draft ITR is to bring ease in filing returns and significantly reduce the time taken for filing ITR by individuals and non-business type taxpayers. Taxpayers will not need to look for schedules that do not apply to them. It will have a smart design of the schedule in a user-friendly manner with better ordering, logical flow and increased scope of pre-filling.

Nangia Andersen LLP partner Sandeep Jhunjhunwala said that taxpayers filing income returns in Form ITR-2, ITR-3, ITR-5 and ITR-6 will not have the option of filing old forms.

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