Saral not-so-Saral anymore
In a new directive, the government
has introduced a new, more detailed
tax-returns form for the year 2006-07.
BY A CORRESPONDENT
June 3, 2006
Saral will not be so simple anymore. On
Friday, the government introduced a new, four-page, tax-returns form for the year 2006-07.
In this new form that comes into effect from June 1, taxpayers will have have to show details for both income and expenditure akin to a company's balance sheet.
In the new form, taxpayers will have to provide a statement of cash flow, including investments. Tax payers will also have to provide a break-up of income from all kinds if sources including tax-free income like gifts from family. Tax payers will have to provide the cash balance and the bank balance in the beginning and the end of the year, which equals declaring every financial detail.
Taxpayers will be spared giving spending details as long as the show the total expenditure. Taxpayers can display the amount not invested as expenditure.
If the income disclosed matches the information provided by third parties through their annual information returns, there will be no need for investigation.
The new form that will replace the one-page Naya Saral will be called Form 2F. As of now, the cash flow statement to be provided under Schedule 5 of the form is optional for the current assessment year but will be mandatory from year 2007-08. Tax payers have the option of using the one-page Naya Saral forms till July 31, the last date for filing returns.