New Delhi: Tax experts do not share the views of the Finance Ministry that new income tax form is simpler than Saral form and said it would increase the work of common tax payers.
The basic objective of the income tax department in respect of the erstwhile tax return form known as Saral was to make the life of the taxpayer really simple.
But the new proposed Saral form (Form 2F) for filing returns is one of the most complicated piece of craftsmanship by the income tax department.
In comparison with the existing form the new Saral is an exhaustive four-page form and it is not going to be an easy affair for most taxpayers to fill up this new Saral form.
"According to the new form the tax assessee is to give each and every detail of expenses incurred by him," said direct tax expert with Deloitte Haskins and Sells Sameer Gogia.
The new tax form has Schedule 5, where assesses are supposed to file their cash flow statement - opening cash and bank balance, various receipts and outgoings during the assessment year.
"Schedule 5 will require assessee to file their statement of affairs (which is akin to balance sheet of corporates), Gogia said. It will make returns filing a cumber some exercise," he added.
Noted income tax consultant Subhash Lakhotia said the new form would frighten the assessee.
"The new form is definitely not simpler than Saral," he said.
Though he defended the logic behind filing of cash flow statement by assessees, he said the rationale should have been adequately explained by the tax authorities before coming out with the new form.
"Assessees would be frightened by the new form," he added.
The new Saral form is to be used by individual taxpayers and Hindu Undivided Families. However, the following categories of people should not use the new Saral form.
Filing of cash flow in schedule 5 of the new form is, however, optional in the current assessment year, making life easier for tax assessees at present, Lakhotia said.
Tax assessees need not worry also because they can file returns in Saral form or 2E, up to July 31.
Moreover, the new form is not meant for persons having business income, short-term capital gains from securities, and agriculture income, he said.
Ved Jain, central council member of the Institute of Chartered Accountants of India, however, said the new form is neither more difficult nor simpler than Saral.
Admitting that filing returns on Saral form was not that easy, officials in the Revenue Department said cash-flow statement would reduce the chances of search and seizures and instrusive investigations.
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