A.P. TAX BAR ASSOCIATION - HIGHLY CRITICAL OF NEW INCOME TAX RETURN FORMS.
Several years back the Income Tax Return forms were bulky and required the services of An expert for filling it. But with the onset of liberalisation the I.T.Return forms got simpler and simpler and finally they became truly saral and it was felt that, as far as filing of the I.T.Return is concerned our country is getting far ahead of even advanced countries. The Government’s coffers were getting full, and all the important and pertinent information was being gathered in saral form, everybody was happy with the state of affairs, and there were no complaints. But for the Assessment Year 2007-08 new I.T.Return form have been introduced which require lot of filling up to do and which is not applicable to a large number of small and medium assessees, which are large in numbers. To deliberate on this burning issue a meeting was held under the auspices of A.P.Tax Bar Association on 21st July, 2007.
Severe resentment and anguish was expressed by tax professionals with regard to introduction of new income tax return forms by finance ministry. In this specially convened meeting attended by large number of chartered accountants, tax advocates and other tax practitioners, main speaker Shri. R.G. Sarda, an FCA, deliberated at length on various changes affected in new income tax return forms 1 to 8. He said many of the changes were unnecessary.
In last two years the government has burdened the tax payers and tax professionals with series of new compliance requirement like introduction of quarterly TDS returns, Fringe benefit tax returns, compliance with stringent set of irrational TDS provisions and rules which covers diverse nature of payments and latest in such burdens is replacement of one page ‘Saral’ forms with ITR forms 1 to 8 which ranges from 5 to 24 pages. It was felt that government is totally insensitive to tax payers’ difficulties, and shows least respect to their democratic rights and has thrust upon them series of compliance burdens, one after another. The current situation reminds one of the oft-repeated remarks made by legendary Nani Palkhiwala that the tax policy makers routinely take for granted that there is no intelligent life outside the North Block (the seat of Finance Ministry).
Mr. Laxminivas Sharma, past president of the Association suggested that a memorandum be submitted to the Finance Ministry listing out the various hardships faced by the tax payers.
Tax practitioners as a class of professionals never resorts to strikes or disruption of work, but some members felt that they should resort to physical demonstrations and other effective democratic ways to register their severe protest against tendency of government to burden the tax payers. These days government listens to noises and not voices, they felt.
Whereas a large number of tax payers are paying their taxes voluntarily and diligently resulting in huge buoyancy in public revenues of the nation in last 5 years, the present government is giving them return gift by imposing never ending series of newer compliance requirements.
As per the wishes of the all the members present, a memorandum was submitted for extension of due date for filing income tax returns from 31st July to 31st August. The association had invited Shri D.V Dharmik, chief commissioner of Income Tax to the meeting, but because of his absence from city, he could not attend.
The meeting was presided by Shri Madhusudan Mantri, FCA, President of Association. At the end Secretary Shri S Eshwaran proposed vote of thanks.
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