Budget 2010-: Made life Saral for salaried taxpayer

In the next financial year, the salaried will not
 only have more money to spend but also can look
 forward to easy tax filings. One of the income
tax reforms that the finance minister announced on
 Friday was the introduction of Saral II form,
which will only have two pages. The Income Tax
Department is now ready to notify Saral-II form
for individual salaried taxpayers for the coming
assessment year. This form will enable individuals
to enter relevant details in a simple format in only two pages,”

 Finance Minister Pranab Mukherjee said during his Budget speech.

For a long time, the Income Tax Department had the Saral form
that it discontinued around four years ago. This form was a
one pager but the taxpayer had to attach different sheets
showing computation of income under various income heads.

“So, it went up to four-five pages,” said Singh.
The replacement forms brought in all computation
 within the form but got tedious for the taxpayer.

Tax experts reckon that the self-employed people will
continue to use the same form as the tax computation
for professionals and businesspersons is more complicated.

These forms will be applicable to the salaried, who have
 income only from their employment and property.


In case, there is an instance of income from any other
 source, they will need to fill in different forms.

Taxpayers can also look forward to less interaction
with the tax authorities, thanks to the computerisation
 and modernisation of the Income Tax Department.

“We have continued on the path of computerisation
 in core areas of service delivery in the administration
of direct taxes. This will reduce the physical interface

One such initiative, namely the Centralised Processing
 Centre at Bengaluru is fully functional and is currently
processing around 20,000 returns a day. “This initiative
 will be taken forward by setting up two more centres during
the year,” said Mukherjee.

Tax experts say that such systems will make the audits more
 computerised and free from the control of any individual
assessing officer.

This is also an effort to reduce corruption in the tax
 department. “Not just in India  but globally governments
 believe that corruption reduces when the physical interface
 between the authorities and taxpayer lessens,” said Singh.

The government has also introduced a pilot project, called
‘Sevottam’, to provide single window system for registration
 of all applications including those for redressal of grievances,
 as well as paper returns. Currently, the scheme is on in Pune,
Kochi and Chandigarh. Four more centres will be added to this
 list in the next financial year.

Tax experts say that the ministry is undertaking these reforms
 to increase the tax base of the country and increase the
tax to GDP ratio.