Credit card, share details requisite on new ITR form

Last updated: 26 July 2007


As the last date for filing income tax returns approaches near, the
rush to fill new ITR forms is building up. And so is the confusion
among tax payers who do not find the new tax form an easy deal.

Last year, when the Income Tax department introduced the
new IT Return, Form 2F, it was immediately given the thumbs down by tax
experts and taxpayers alike. The form had required individuals to
furnish complicated cash flow details.



This year, the Income Tax Department has re-introduced
the forms which does not asks for cash flow details unlike the previous
forms. You also need not submit a Form 16 while filing your returns.
Instead the relevant information from form 16 need to be directly
filled in to the form.



There are though a host of new information that needs to be furnished. As per Income Tax rules these are:




  • Cash deposits aggregating to Rs 10 lakh or more in a year in any bank savings account
  • Credit card bill payments over Rs 2 lakh



  • Investment of Rs 2 lakh rupees or more in mutual funds or shares



  • Purchase or shares worth over Rs 1 lakh



  • Purchase or sale of immovable property valued at Rs 30 lakh or more



  • So is this form much more complicated than the old Saral form?



    “Form number one is a simple form but it has very
    limited applicability. It is meant only for persons who have salary
    income and interest income. As soon as any other income goes on
    increasing, the form keeps getting more and more complicated,” says tax
    expert Ravi Gupta.



    Taxpayers can however take heart from the fact that this time one can avoid the long queues by just filing your returns online.



    So filing your taxes may have become simpler, but even
    tax experts are adopting a wait and watch policy before they comment on
    how easy the process finally will turn out to be!



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Category Income Tax   Report

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