Press Note

New Income-tax Return- ‘Form No.2F’


With a view to make return filing easier, the Central Government has notified on 1st June, 2006 a new income-tax return form “ Form 2F” for Assessment Year 2006-07.This Form has been designed in a manner so that it is easy to understand and can be filled up with little or no help.
This Form can be used by resident individuals and HUF who do not have –
   
(i) profits and gains of business or profession; or
(ii) capital gains; or
(iii) agriculture income; or
(iv) more than one house property; or
(v) any claim for relief under section 89 in respect of arrears or advance of Salary.


However Individuals/HUF having long-term capital gains from transactions in securities on which securities transaction tax (STT) has been paid can also use this form.
(This Form is applicable with immediate effect. However to allow sufficient time to taxpayers to familiarize with this Return form, the existing one page Saral Form :2E can also be used up to 31.7 2006.

  The salient features of the new form are-

(i) It has been expanded to four pages so that there is sufficient space to fill in the details.

(ii) No annexures are required to be attached with this Return form. If enclosed, same shall be returned by the official receiving the return.

(iii) Detailed explanatory instructions have been provided to fill this Form.

(iv) Cross-referencing to the Instructions has been provided for most entries.

Schedule 5 of the new form seeks to have cash-flow statement for the Financial Year of which Income has to be reported. However for Assessment Year 2006-07 it is optional to fill this schedule. The main advantage of furnishing the cash-flow statement is that the information collected from the third party sources through AIR can be verified with the outgoings during the year. Therefore, this would substantially reduce the probability of scrutiny assessment or any other kind of intrusive investigation.
The Government proposes to encourage the taxpayers to follow a two-step procedure to file this Return. First, they should transmit this return and schedules thereto electronically (without digital signature) to web-site http://www.incometaxindiaefiling.gov.in and thereafter file a paper Return. The date of such transmission and acknowledgement number given electronically by the Income-tax Department for such transmission has to be mentioned in the paper Return. However, in case the details of the Return are not transmitted electronically, the paper Return must necessarily be filed and will be treated as a valid Return.

The Income-tax Department would like to encourage taxpayers to use this Form so as to serve them better.