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Pensioners may be exempt from Form 2F
Monica Gupta in New Delhi
 
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August 29, 2006 10:46 IST

While the public response to the new income tax return form 2F is nowhere close to the I-T department's internal estimate of 50 lakh this year, the revenue department is considering exempting certain categories such as pensioners from filing their returns using the next year.

"We have received several suggestions from the public to exempt pensioners and even senior citizens from Form 2F. However, the proposal to exempt pensioners would be examined by the I-T department and a view would be taken for the next financial year," a finance ministry official said.

Officials said there was support for the proposal from certain quarters within the revenue department since the intention of Form 2F is to ascertain the cash flow statement of the salaried taxpayers and not so much the pensioners.

Under present norms, those who earn short-term capital gains, agricultural income, have more than one house property or earn profits from business or profession are not eligible to use From 2F to file their returns. The new form introduced this year, was optional for
salaried taxpayers who filed up to July 31.

While the exact number of tax returns filed using Form 2F is still being ascertained, the department had conducted a sample survey in Mumbai, which showed that the number of people who had filed their returns in the new form was less than 2 per cent.

The public has, however, responded positively to the finance ministry's move to accept tax returns at post offices. Nearly 360,000 returns have been filed through the postal department.

Form 2F had attracted severe criticism as it is more exhaustive and seeks details on the number of dependents, income from property such as rent, annual value and taxes paid to local authorities.

A major change is the inclusion of the cash flow statement. Taxpayers are required to submit composite details of their cash balance, the balance in banks, other receipts by way of loans, gifts, donations and expenses by way of investment purchase of a car and gold among other things.

Salaried taxpayers can use other return forms - Form 3 (the 10 page return form for those earning non-business income) or the one page Saral Form 2D (for those with income from business or profession, and non-business income) to file their returns next year, but the revenue department has not ruled out the possibility of amending other return
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