Whats wrong with the new ITR??

Last updated: 25 June 2007

Para 1

In fact it is tough time for few so called income tax practitioners because New ITRS requires the basic knowledge of the Act and accounts.

Para 2

It’s a myth and sheer ignorance (which again substantiate the para 1 above) that the previous form “SARAL” consisted of only one page.

As per instructions for filling SARAL, separate annexure and sheets were required to be annexed to SARAL showing detailed calculations under various heads.

Again, let me remind you dear friends that under the provisions of section 139 a lot of annexure and details were required to be annexed to even SARAL. By remaining blissfully ignorant to this, weren’t nothing but only defective returns filed?

Who is afraid of giving “much more information” and why?

Para 3

What are these so called “quite detailed information” ?

For a salaried employee there is hardly any difference in the information/columns in new ITRS except AIR details which are very well supported by instructions. All assessee can very well understand it and fill it up at their own.

Everyone keep documents relating to transactions covered under AIR which amounts to lacs of rupees. To say that salaried employee don’t keep records pertaining to those transactions is totally false, misleading and misrepresented statement.

Para 4

Which form seek cash flow details?

At least, one should go through the new ITRs before making such an outcry.

Para 5

How much time actually an individual assessee may reasonably be require to comprehend the new ITR? …..10 days? ……….20 days? ……… 30days?

Why would anybody want one year time and that too on pretext of the assessee?

Para 6

As said before, nothing is complicated about the new ITRS, all the columns and headings are crystal clear. Even an average person with the basic knowledge of the act can fill it at its own.

The word “complicated/complication” has been used so many time but not a single complication has been pin-pointed. All the so called complications are vaguely worded and used to create a hoax.

In fact I congratulate our Finance Minister for coming out with a simple, informative and annexure less return.

Para 7

The object of the statute is certainly not to increase the revenue or the number of assessee.

The true purpose of any statue is to inculcate a sense of responsibility and awareness among the masses. Had it been the intention of the law to increase the revenue or the assessee, VDS scheme would never have been closed.

The prevalent mal-practice of filing SARAL without requisite details has infact lead to money laundering and mushrooming of so called tax practitioners which motivate assessee to withhold the information even if he is willing to make the information available.

Simplification by no means stands for suppression of information.

Para 8

The turnover limit set for the purpose of Section 44AB of the Income Tax are just an indication of at what volume of business an assessee is supposed to have “x” number of transactions/complexities which call for audit. Here what is important is the volume & complexities of transactions not the amount.

Further, with the introduction/modification of many new/existing acts and laws like service tax, VAT etc. those criteria’s which justified tax audit at the price index of Rs. 125/- have increased at a higher pace than the inflation index.

Other issues:

ø Address of the Assessee

It goes without saying that address of the assessee to be mentioned in ITR should be the current address. If the address of the assessee has changed, he should get it corrected in PAN. Where is the confusion?

Even when ITO accepts the ITR, its in the duty of the assessee to get his address rectified.

It’s a prevalent and unfair practice to term legal requirements as “problem”.

ø Which ITR ?

By default, ITR-4 is applicable to such assessee.

ø Audit report

Since almost all the details of tax audit report are now required to be furnished in ITR itself, this issue is baseless.

Evenso how does Audit report rules out manipulation in books? Manipulation is a very wide term and takes many forms.

ø Multiple Balancesheets

To take a holistic view of the assesses affair, a consolidated balance sheet is very useful and I would actually advise assessee is have it for their own sake. True, it means a little effort. But its worth it.

Again, even if a provision is made in new ITRS for more than one financial statement, multiple balancesheets would need to be filled in ITRS anyway. So where is the point of overloading?

Why not prepare a consolidated one and fill a single one in ITR?

ø Irrelavant Details

Which details? This is again a vague statement.

ø Trade Name

It is very much there in ITR, again I would advise all to at least go through the return before making an outcry.

ø Duties Paid

The Profit & Loss Account requires only the amount not the ‘complete details”.

Again in cases covered under “no account case’ these information are not to be given.

I don’t see any point in Why business required to have proper books of account can’t provide these information?

ø Availability of New ITRS

All the ITRS are available at the web portal of income tax.

If nobody know anything then this thing for sure everybody knows. May be those “NOBODY” AND EVERYBODY” lives in two different World.