New Saral form is saral enough: FM

New Delhi: Finance Minister, P Chidambaram made his first official comment on the Saral form. He said that the Saral form was saral enough.

Chidambaram has clarified that the higher-than-scheduled bond auction in June will be adjusted later this year.

Chidambaram said, "One of the reasons why Form 2F was introduced was that it was computer friendly. One could file it electronically. The old, so called, naya Saral form, which continues this year, is not a form amendable to electronic filing. Both are available. You choose which you like."

However, tax experts do not share the views of the Finance Ministry that new income tax form is simpler than Saral form and said it would increase the work of common tax payers.

Under severe attack from various quarters, including the Congress party, the Government earlier said that the new form introduced for filing Income Tax returns would be dropped from next year.

"The new four-page form which replaces the one-page Naya Saral form is meant for only this year and will only be optional for filing returns, Revenue Secretary K M Chandrasekhar said.

The move follows widespread criticism from tax experts and political parties, including the ruling Congress, who wanted the Saral form to remain simple and the new form simpler.

The new form next year could be a modified one based on the feedback the tax department receives or could be an improved version of either the existing Saral form or 2F.

Giving a detailed rationale behind the form 2F, Chandrasekhar said the new form was really "simple" and an attempt to make it self-explanatory and do away with all annexure including Form 16A providing details of tax deducted at source by the employer.

The background:

Currently, individuals, including the salaried class have the option of filing their returns by using either:

Saral (Form 2D): Which is the Income-tax return form specified for non-corporate assessees other than persons claiming exemption under section 11 OR

Naya Saral (Form 2E): Income-tax return form for resident individuals and HUFs not having income from business or profession or capital gains or agricultural income.