Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: VAT Audit :: ACCOUNTING STANDARD :: TDS :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: Central Excise rule to resale the machines to a new company :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: articles on VAT and GST in India :: VAT RATES :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS
News Headlines »
 The penalties for not paying tax on time
 How to make your salary tax efficient
 I-T Department may go into overdrive this quarter
 Ways to reduce the TDS deduction from your salary
 4 Tips for choosing who prepares your 2017 Tax Returns
 Processing of income-tax returns under section 143(1) of the Income-tax Act which were filed in Forms ITR-1 to 6 & applicability of section 143(1)(a)(vi)
 Price Waterhouse gets 2-year ban in Satyam case
 How to save income tax under section 80C
 These four expenditures can help you save tax under section 80C
 How to avoid excess deduction of TDS from salary income
 Income-tax deduction from salaries during the financial year 2017-18 under section 192 of the Income-tax Act, 1961

An ephemeral measure
July, 08th 2006

Form 2F caters to the non-business class which largely includes the salaried, by far are the most tax-compliant thanks to the TDS scheme.

Form 2F, introduced with effect from June 1, 2006, will be valid only for Assessment Year 2006-2007. This much is conceded by the form itself as well as by the departmental press release on the issue. And as per the amended Rule 12, the existing Saral Form 2E can be used till July 31, 2006.

In other words, Form 2F is going to have an extremely limited use to be filled in by those individuals and HUFs making the grade by having no business income, etc., and who wake up late to the need for filing the return for the Assessment Year 2006-2007. To be sure those filing the return within the prescribed time would plump for the simpler Form 2E. In the event, the question that is being asked naturally is why this ephemeral measure especially given the fact its ghost the cash-flow statement has been exorcised.

The form says it is entirely optional for assessees to fill in Schedule 5, setting out the cash-flow statement for the period April 1, 2005 to March 31, 2006. That the form itself would become unusable thereafter makes the cash-flow statement a non-starter.

Maybe the Department would like to bring in a new Form 2F, including the requirement to set out the cash-flow statement for subsequent years.

Half-hearted move

But the point is why initiate a measure half-heartedly and dilute its main plank even as it is put in place. The form does away with the statutory requirement of attaching proof of payment of advance tax and tax deducted at source, cast by Section 139. There is a small technical hitch here.

Rule 12 has been amended by the CBDT pursuant to the power that it has in this regard under Section 295, whereas the power to do away with the rigours of Section 139 is available under Section 119(2).

This small but significant infirmity must be set right. Form 2F is intended as an e-return which is perhaps why the need for enclosures has been done away with. But since one is simultaneously required to follow up the e-return with a paper return as well, where is the difficulty in submitting TDS certificates, etc?

As it is, it is not even mandatory for one to send Form 2F across electronically. Form 2F caters to the non-business class which largely includes the salaried, by far the most tax-compliant thanks to the TDS scheme obtaining for it.

But, ironically, the exhortation to come clean through cash-flow statement is made to them.

The threat of analysing the cash-flow statement in juxtaposition with the Annual Information Report submitted by banks, mutual funds, Registrar of Properties, and so on, should have been held out to the business class which, thanks to the code for computation of business income, has considerable latitude for tax planning.

Evidently, the Department has ushered in a measure without thinking through its ramifications.

S. Murlidharan
(The author is a Delhi-based chartered accountant.)

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
System Testing Solution Manual Software Testing Solutions Automation Software Testing Solutions System Workflow Testing System Manual Testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions