New Form – not all that Saral
“Nothing can be simpler”, declared the mandarins of Ayakar Bhavan about the new Income Tax form for individuals. But tax professionals are not impressed. They feel it is not simpler than Saral. Some opinions:-
++ The new form, called '2F' is definitely not simpler than Saral as the tax assessee is to give each and every detail of expenses incurred by him.
++ 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.
++ The schedule is optional for this assessment year, but would be made mandatory from the next year.
++ Schedule 5 will require assessee to file their statement of affairs (which is akin to balance sheet of corporates), It will make returns filing a cumbersome exercise
++ the new form would frighten the assessees
++ The new form is definitely not simpler than Saral
++ One fails to understand how this form is going to be easy to fill up, easy to understand with little or no help (from tax experts) as is being said by tax authorities.
++ 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.
++ Tax assessees need not worry also because they can file returns in Saral form or 2E, up to July 31.
++ the new form is not meant for persons having business income, short-term capital gains from securities, and agriculture income
++ cash-flow statement would reduce the chances of search and seizures and intrusive investigations.