‘Naya Saral gets kathin’

NEW DELHI: The Parliamentary Standing Committee on Finance has demanded withdrawal of the Finance ministry’s proposal of a new Income Tax Return form.

 

The new form requires an attachment of the ‘Cash Flow Statement’, an aggregate of bank balance at the beginning of the year, income details during the year and finally, matching the aggregate of total expenditure and the bank balance at the end of the year.

 

After a detailed analysis and views from the finance minister, the Standing Committee found it “absolutely unnecessary to include cash flow statement in Income Tax Return forms.” It is a critical move by the finance ministry to push the new forms from 2006-7. It recommended the “government must do away with the provision of the Cash Flow statement in Form No 2F and 3 altogether. The committee is of the opinion that once the income is taxed, utilisation of income by the assessee should not concern the I-T department.”

 

It even ridiculed the name ‘Naya Saral’. It said the new form seems to be too cumbersome, fit to be called ‘Kathin’ instead of an improved version of erstwhile ‘Naya Saral’. “It is very confusing and the system which hitherto existed for the assesses was convenient,” it said.