Comments regarding removal or continuance of exemptions and deductions under the Income Tax Act, 1961.
Government is committed to simplify the tax laws, minimize the distortions within the tax structure and broaden the tax base. In this context, tax incentives in the form of various exemptions and deductions are being reviewed. Government is keen to involve all stakeholders in this exercise.
Accordingly, existing exemptions and deductions under the Income Tax Act, 1961 are listed below and comments with supporting rationale for their removal or continuance may be sent by e-mail or post by 5th July , 2006 to:
Ms. Anita Kapur, Joint Secretary, TPL-I, Room No. 147-B/I, North Block, New Delhi.
e-mail: jstpl1@nic.in or
Ms. Monica Bhatia, Director, TPL-I, Room No. 147-D, North Block, New Delhi.
e-mail: dirtpl1@nic.in or
Ms. Pragya S. Saxena, Director, TPL-II, Room No. 147-E, North Block, New Delhi.
e-mail: dirtpl2@nic.in
Monday, June 05, 2006
For those who have not come across this news, here it is - an article on The Hindu
New income-tax return form introduced
New form seeks to capture not only assessee's income but also expenditure during financial year under assessment.
· Out goes existing "Saral"; new form to reflect actual cash flow of the assessee
· Option of filing electronic or hard copy return this year; only electronic from next year
In place of the existing one-page "Saral" form for filing income-tax (I-T) returns, the Union Government on Friday introduced a new four-page form ("Form 2F") which seeks to capture the assessee's income as well as expenditure for the entire financial year.
With the objective of tracking tax evasion, the new form has ample space for providing a detailed cash-flow statement. Henceforth I-T assessees will have to mention their cash balance in bank accounts at the beginning and end of the financial year under assessment.
Addressing a press conference here, Revenue Secretary K. M. Chandrasekhar claimed that the new form was self-explanatory and easy to fill up, even as the assessees would have to provide information about the investments made and expenses incurred during the year as also loans secured and gifts received during the period.
Elaborating further, Mr. Chandrasekhar said that the deduction of outgoings of the tax assessees by way of their expenses and investments from receipts, including the opening cash balance, bank balance, income, gifts and other receipts, would provide the cash balance and balance in banks at the close of the year.
"It [the new form] will reflect the actual expenditure and cash inflow of an individual. The assessee will also have to give the opening and closing balance and the two will need to be matched," he said.
According to senior tax officials, if the amounts (opening and closing balance in banks) "roughly" matched the data provided by third parties through annual information returns (AIRs), banking cash transaction tax (BCTT) and field officers, the need for any further scrutiny and investigation would not arise.
I-T Department officials maintained that the cash-flow statement would not be an intrusion into the households of the I-T assessees as only the lump sum amount of household expenses would be required to be filled up without any details.
Mr. Chandrasekhar also made it clear that the cash-flow statement, to be furnished under Schedule 5 of the new form, was optional for the current assessment year, but would be mandatory from 2007-08. The new format, he said, would make the task of filing returns simpler with little or no help from taxation experts.
The new form, Mr. Chandrasekhar claimed, would benefit honest taxpayers as no annexures such as details of total income, "Form 16" providing details of tax deducted at source (TDS) would be necessary along with it.
He noted that while the assessees had the option of filing the I-T return electronically or by way of a hard copy for this assessment year, it would be accepted only in electronic form from next year.
For the current assessment year, however, taxpayers have the option of using the one-page Saral form (Form 2E) till July 31, 2006, the last date for filing I-T returns. This, he said, was to allow sufficient time to taxpayers to familiarise themselves with the new form. "The new form," Mr. Chandrasekhar said, "can be used by resident individuals and Hindu undivided families (HUFs) who do not have (a) profits and gains of business or profession, (b) short-term capital gains, (c) agriculture income, (d) more than one house/property, or (e) any claim for relief under Section 89 in respect of arrears or advance of salary.''
New income-tax return form introduced
New form seeks to capture not only assessee's income but also expenditure during financial year under assessment.
· Out goes existing "Saral"; new form to reflect actual cash flow of the assessee
· Option of filing electronic or hard copy return this year; only electronic from next year
In place of the existing one-page "Saral" form for filing income-tax (I-T) returns, the Union Government on Friday introduced a new four-page form ("Form 2F") which seeks to capture the assessee's income as well as expenditure for the entire financial year.
With the objective of tracking tax evasion, the new form has ample space for providing a detailed cash-flow statement. Henceforth I-T assessees will have to mention their cash balance in bank accounts at the beginning and end of the financial year under assessment.
Addressing a press conference here, Revenue Secretary K. M. Chandrasekhar claimed that the new form was self-explanatory and easy to fill up, even as the assessees would have to provide information about the investments made and expenses incurred during the year as also loans secured and gifts received during the period.
Elaborating further, Mr. Chandrasekhar said that the deduction of outgoings of the tax assessees by way of their expenses and investments from receipts, including the opening cash balance, bank balance, income, gifts and other receipts, would provide the cash balance and balance in banks at the close of the year.
"It [the new form] will reflect the actual expenditure and cash inflow of an individual. The assessee will also have to give the opening and closing balance and the two will need to be matched," he said.
According to senior tax officials, if the amounts (opening and closing balance in banks) "roughly" matched the data provided by third parties through annual information returns (AIRs), banking cash transaction tax (BCTT) and field officers, the need for any further scrutiny and investigation would not arise.
I-T Department officials maintained that the cash-flow statement would not be an intrusion into the households of the I-T assessees as only the lump sum amount of household expenses would be required to be filled up without any details.
Mr. Chandrasekhar also made it clear that the cash-flow statement, to be furnished under Schedule 5 of the new form, was optional for the current assessment year, but would be mandatory from 2007-08. The new format, he said, would make the task of filing returns simpler with little or no help from taxation experts.
The new form, Mr. Chandrasekhar claimed, would benefit honest taxpayers as no annexures such as details of total income, "Form 16" providing details of tax deducted at source (TDS) would be necessary along with it.
He noted that while the assessees had the option of filing the I-T return electronically or by way of a hard copy for this assessment year, it would be accepted only in electronic form from next year.
For the current assessment year, however, taxpayers have the option of using the one-page Saral form (Form 2E) till July 31, 2006, the last date for filing I-T returns. This, he said, was to allow sufficient time to taxpayers to familiarise themselves with the new form. "The new form," Mr. Chandrasekhar said, "can be used by resident individuals and Hindu undivided families (HUFs) who do not have (a) profits and gains of business or profession, (b) short-term capital gains, (c) agriculture income, (d) more than one house/property, or (e) any claim for relief under Section 89 in respect of arrears or advance of salary.''
Subscribe to:
Posts (Atom)