I-T form 2F to stay, with some changes
PUTTING TO rest the confusion regarding the income-tax returns form, the government has said the new form - 2F - is here to stay, albeit with some modifications.india Updated: Jun 12, 2006 01:24 IST
PUTTING TO rest the confusion regarding the income-tax returns form, the government has said the new form - 2F - is here to stay, albeit with some modifications.
Revenue secretary K.M. Chandrashekhar said on Sunday: "The new tax form is here to stay. It will be renotified for the next year (2007-08), maybe with some modifications based on reviews and feedback." Tax experts say that if the government alters it, the form will have to be renamed. The new four-page form -- that will replace the existing one-page Naya Saral Form 2E -- had sparked major criticism from various quarters, including the Congress which wanted a simplified form.
The controversy mostly centred on Schedule 5 under which assessees have to provide a cash-flow statement -- that will include their income, expenditure and investments -- for the financial year. The government's decision to go ahead with Form 2F shows its intention of tracking the money trail. Chandrashekhar said the cash-flow statement would come in handy to detect large unreported income.
He said unlike in the past, tax authorities would have access to information like the annual information returns to track the lifestyle of the assessees. "We have collated individual ledgers of tax payers," he said. And whenever tax returns are filed, the I-T department will be able to get details about tax assesses — like PAN and high-value purchases and investments — at the click of a mouse.
This year, Form 2F is optional till July 31.
First Published: Jun 12, 2006 01:24 IST