New Delhi, June 2
Income tax assessees who have been saving tax by hiding their income would now find it difficult as the government has decided to replace the one-page Saral form with a four-page form to trace undisclosed income of taxpayers.
The taxpayers have, however, been given the option of filing tax returns for this year in the existing Saral form up to July 31, the last date for the filing of returns.
Tax consultants have touted it as a complicated form, saying that it would require assistance from tax consultants.
However, talking to reporters here today, Revenue Secretary K.M. Chandrasekhar said the new form had been introduced from June 1 to make return filing easier.
The new income tax form, called form 2F, can be used by individuals, Hindu undivided families , those who do not have profits and gains of business or profession, capital gains, agriculture income, more than one house property, any claim for relief under Section 89 in respect of arrears or advance of salary.
The form, he said, introduced Schedule 5 in which tax assessees would have to report cash flow for a financial year. Cash flow statement under Schedule 5 is optional for this financial year. It would be mandatory from next year.
He said the advantage of furnishing the cash flow statement was that it would substantially reduce the probability of scrutiny assessment or any other kind of intrusive investigation.
While filing cash flow, the assessees have to give their opening cash balance in the year, income during the year, other receipts and outgoings.
The deduction of outgoings from other items would give cash balance and balance in banks at the end of the year.
CBDT member Arvind Modi said no details of expenses like household expenses would be asked and the assessees were required to fill only the lumpsum amount.
The form would be simpler in the sense that it would not require any annexure, not even Form 16(TDS certificate). The advantage of furnishing the cash flow statement was that the information collected from third party sources through the AIR could be verified with the outgoings during the year.
The government proposes to encourage the taxpayers to follow a two-step procedure to file the return. They should transmit the return and schedules electronically(without digital signature) to http://www.incometaxindiaefiling.gov.in and thereafter file a paper return.
The date of such transmission and acknowledgement number given electronically by the Income Tax Department had to be mentioned in the paper return.
