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  1. New Income Tax Return forms to be far more simplified: Arun Jaitley

New Income Tax Return forms to be far more simplified: Arun Jaitley

Referring to the criticism of new 14-page income tax return (ITR), Finance Minister Arun Jaitley said the entire issue has been reviewed.

By: | New Delhi | Published: May 17, 2015 8:26 AM
Arun Jaitley on income tax return forms

An “extremely simplified” income tax return form will soon replace the controversial 14-page ITR Finance Minister Arun Jaitley announced (AP/PTI)

An “extremely simplified” income tax return form will soon replace the controversial 14-page ITR that sought information like all bank accounts and foreign trip details, Finance Minister Arun Jaitley announced in the Lok Sabha on Saturday.

“I am having the entire matter reviewed and very soon you will hear an extremely simplified procedure coming for us,” he said replying to the debate on the Finance Bill, 2015.

Referring to the criticism of new 14-page income tax return (ITR), he said the entire issue has been reviewed and the form will be based on feedback received from the industry and MPs.

“Recently, a controversy did come up. There is an old income tax form of 12 pages which was made thirteen-and-a-half page. I was out of the country when this was done, I had it stopped,” he said.

The Finance Ministry is considering easy taxation form which an “assessee can do things himself and does not have to run to various advisers”.

Many members cutting across party lines had criticised government for issuance of a new tax return form saying that the present form impinges on the individual’s privacy as it seeks details of all bank accounts and foreign travel.

Earlier this month, the Central Board of Direct Taxes (CBDT), the apex policy making body of the Income Tax department, notified the new ITR forms for the current assessment year, seeking additional details to check the menace of black money.

As it stands, the new ITR forms, including the ITR-1 and ITR-2, require an assessee to furnish the number of bank accounts held by the individual “at any time (including opened/closed) during the previous year” with the last balance in the account on March 31 of the just-concluded fiscal.

The assessee will also have to furnish the name of the bank, account numbers, their address, IFSC code and any possible joint account holder.

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  1. N
    Narendra M
    May 17, 2015 at 3:54 pm
    (1) When format of new Income Tax Return (ITR) was announced, taxpayers were naturally worried about time to be spent to fill in the new ITRs. (2) Merely seeking additional information in ITRs would not serve any good purpose, unless the Income Tax Department (ITD) is in a position to use such information for finding out cases of concealment of income and evasion of tax. Past experience tells us that ITD does not use the right kind of software to analyse information provided by taxpayers and hence information provided in ITRs is of very little utility for the purpose for which it is sought. (3) Therefore, if Union Finance Minster is able to ensure that ITRs are simple, all taxpayers would welcome them.
    Reply
    1. O
      oldtimer
      May 18, 2015 at 5:14 pm
      It is not in the interest of the Tax department to simplify the forms. They need their daily Baksheesh.
      Reply

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