PRESS RELEASE

The Central Board of Direct Taxes have notified the new return Form No.-1 (for corporate tax payers), Form No.2 (for no-corporate tax payers having business income), Form No.3 (for non-corporate tax payers not having business income) and Form No. 3B(for fringe befits) vide notification S.O. No. 1163(E) dated 24^th July, 2006. The new Form Nos. 1, 2 and 3 substitute the existing Form Nos. 1,2, and 3 and come into force immediately.

2.          The new Forms are comprehensively designed so as to do away with all kinds of attachments and facilitate electronic filing.  The central Board of Direct Taxes have also consulted the Institute of Chartered Accountants of India and have taken into account their suggestions in designing the forms.

3.          The Form No.1 and Form No.2 are combined return of income and fringe benefits.  However, a separate return for fringes benefits (Form No.3B) has also been notified for tax payers who have already filed their income tax return or choose to file their income tax return in Form No. 2D or who are liable to furnish the return the return of fringe benefits only.  The Form N. 3 is a return of income for non-corporate tax payers not having any business income.

4.          The new Form No.1, applicable to corporate taxpayers, is required to be compulsorily filed electronically.  If   the return is digitally signed, electronic transmission is sufficient and it would not be necessary to file the paper return.  However, if the corporate return is not digitally signed, it will be necessary to file the return by following a two step procedure.  First, the return and the schedules thereto must be transmitted electronically (without digital signature) to web-site http://www.incometaxindiaefiling.gov.in. The acknowledgement number and the date of electronic transmission issued by the Income Tax Department should be entered in the certificate below the verification of the return and, thereafter, the paper return should be filed with the Income tax Department.   

5.          The new return Form Nos. 2,3, and 3B can also be filed in the same manner as corporate tax returns.  However, it is optional for the taxpayer to file the return electronically.

6.          The new return forms will be available on the web-site http://www.incometaxindiaefiling.gov.in.  However, the software for electronic filing of tax returns in Form No.1, Form No.2 and Form No. 3 and Form No. 3B will be available on the same web-site from the middle of September, 2006.

7.          Further, in order to enable the taxpayers to familiarize themselves with the new return Forms and compile the information called for therein, the Central Board of Direct Taxes has issued an order under section 119(2)(b) of the Income Tax Act extending the due date for furnishing return of income and return of fringe benefits for assessment year 2006-2007 from 31^st July, 2006 to 31^st October, 2006 in all cases of non-corporate taxpayers (including partners of the firms and charitable trusts and institutions).

8.          However, in the case of individuals and HUFs not having income under the head Profits and gains from business of profession (i.e. in the case of individuals and HUFs having income only from salary or house property or capital gains or Other sources), the due date for filing of return of income shall continue to be 31^st July, 2006.

9.          The Income-tax Department encourages all taxpayers to use the electronic filing facility to enable them to serve them better.

*********