New Delhi: The Government on Sunday set to rest doubts about continuation of the new Income Tax returns form 2F from next year, saying it was here to stay, albeit with some modifications.
"The new tax form is here to stay. Though the form is notified only for this year, it would be re-notified for next year (2007-08) maybe with some modifications based on review and feedback," Revenue Secretary K M Chandrashekhar said.
The new four-page form, which would replace the existing one-page Naya Saral form 2E, sparked criticism from various quarters including the Congress party, which wanted the form to be Saral (simple) and any new form to be further simplified.
This year, the filing of returns on the new form is optional until July 31, the last date for filing Income Tax returns.
The Income Tax assessees have the choice of filing returns either in the new one or the old Naya Saral form.
Beyond July 31, the assessees can file returns only in the new form 2F or Saral form 2D, which is still in use.
The controversy over the new form centred around a new schedule called 5, in which the assessees have to provide cash flow statement for the financial year that would include their income, expenditure and investment.
But filling up of this schedule, which has widely been criticised, was however optional for this year.
Chandrashekhar was critical of the attempts to portray the form as a monster and believed that after initial resistance, it would catch on.
The main purpose of the new form was to make it self-explanatory and do away with all annexures including Form 16A providing details of tax deducted at source by the employer.
Chandrasekhar said 2F was certainly more simpler than the existing Naya Saral form and the additional pages provided were only worksheets to make filing of returns easier for the common man.
Under the earlier 'Naya Saral' form, which will cease to exist from July 31, these worksheets were provided by way of annexures, details of which could be worked out only by experts and not by the common man as no instructions were provided.
The form will facilitate refunds electronically, he said, adding that cash flow statement will come in handy to detect large unreported income.
He said adding unlike in the past, tax authorities have access to a lot of information like annual information return (AIR) to track the lifestyle of tax assessees.
"We have collated individual ledgers of tax payers," he said, adding whenever tax returns are filed, the tax authority can access on his computer all details about the tax assessees like Pan and other details including some of the high value purchases and investments.
Form 2F can be used by individuals, Hindu Undivided Families, who do not have profits and gains of business or profession, capital gains, agriculture income, more than one house property and any claim for relief under section 89 in respect of arrears or advance of salary.
Chandrasekhar said the main advantage of furnishing the cash-flow statement is that it would "substantially" reduce the probability of scrutiny assessment or any other kind of intrusive investigation on tax assessees.
The Secretary said the department was in the process of improving the existing Form 16AA provided by the employers indicating the tax deducted at source from its employees.
All those tax assessees who do not have any income other than salary up to Rs 1,50,000 need have to file only form 16AA as tax returns.
He said tax authorities were also working on a proposal to appoint bankers for income tax refunds, which presently takes a long time.
"The Government is looking at appointing refund bankers in the next one year, who will credit refund in the bank accounts of income tax assessees," he said.
Comments
0 comment