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Hema Ramakrishnan

NEW DELHI, June 3

INCOME-TAX assessees have cause to cheer as the Finance Ministry has decided to dispense with the multi-page I-T return ''Saral'' form for those with taxable income of up to Rs 2 lakh. These assesses will be permitted to file I-T returns in the old one-page form.

The going will be good for those with an taxable income of over Rs 2 lakh, with the Revenue Department set to simplify the multi-page return form. This segment of taxpayers will not be required to furnish general information such as details of expenditure and credit cards, officials said. The move to review the existing format of the Saral form followed a directive from the Finance Minister at the recent conference of Chief Commissioners and Director-General of Income-Tax.

The one page Saral form had several annexures. Officials, however, contend that the multi-page Saral form -- where the annexures have been dispensed with -- is "assessee friendly'' since it gives a structured way for computation.

In yet another move, the Revenue Department has also proposed making it mandatory for salaried employees with taxable income of over Rs 1.5 lakhs per annum to submit Form 12 BA -- which is a statement on the valuation of perks -- while filing their I-T returns.

Form 12 BA -- like Form 16 -- is a statement given by the employer to the employee valuing the perks given to the latter. Officials said that the Revenue Department would amend income-tax rules to make it mandatory to submit Form 12 BA alongwith the I-T return form. This is set to come into force immediately, said official sources.

The Revenue Department has also proposed amending some other I-T rules to facilitate procedural changes following the move in this year's Budget to allow employers to pay tax on perks given to employees. Officials said that Rule 30 (on time and mode of payment of tax deducted at source) and Rule 31 (on the certificate of TDS) would be amended to include tax paid by the employer. This means that TDS rules will be applicable if the employer exercises the option of paying tax on perks.

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