INDIA BUSINESS WORLD - MAY 2006
THE MONTH THAT WAS...

I-T TO GIVE SARAL A COMPLEX

SARAL may become complex. The finance ministry is planning to introduce a four-page Saral form where assesses will have to mention their major household expenditure such as purchase of a car, money spent on children's education and overseas travel.

The proposed amendment would help the income-tax department ascertain whether a person's income is commensurate with his expenditure. It has been found that many people, while having an extravagant lifestyle, do not pay any income-tax.

The change would impact both salaried tax payers as well as non-salaried persons. “The proposal is still in conceptual stage,” a finance ministry source told ET.

The government is also considering exempting non-salaried tax payers from giving proof of income and expenditure. These people would be asked to furnish all such information in the form itself. There would be strict penalty provisions for providing wrong information. The assessing officer would, however, have power to ask for details at the time of scrutiny. The move aims at reducing paperwork and simplify the filing of returns.