New I-T return form to stay: Govt

Govt says the new Income Tax return form '2F' is here to stay, albeit with some modifications.

The Government on Sunday set at rest doubts about continuation of the new Income Tax returns form '2F' from next year, saying it was here to stay, albeit with some modifications.

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"The new tax form is here to stay. Though the form is notified only for this year, it would be re-notified for next year (2007-08) maybe with some modifications based on review and feedback," Revenue Secretary KM Chandrashekhar said.

The new four-page form, which would replace the existing one-page Naya Saral form '2E', sparked criticism from various quarters including the Congress party, which wanted the form to be Saral (simple) and any new form to be further simplified.

This year, the filing of returns on the new form is optional until July 31, the last date for filing Income Tax returns. The Income Tax assessees have the choice of filing returns either in the new one or the old Naya Saral form.

Beyond July 31, the assessees can file returns only in the new form 2F or Saral form 2D, which is still in use.

The controversy over the new form centred around a new schedule '5', in which the assessees have to provide cash flow statement for the financial year that would include their income, expenditure and investment.