The one-page Saral form for taxpayers having no business income to file income tax return up to an income of Rs 500,000 must be extended to all taxpayers. The Sugam ITR-4S form for presumptive income from business and profession must allow a maximum tax slab of 30 per cent only, the present slab of 50 per cent is too high.
Small businessmen/professionals do not have that high a margin. Moreover, the purpose of presumptive income is defeated with this high 50 per cent margin/profit. The fee of Rs 5,000 for delay in filing income tax return after due date till December and Rs 10,000 in all other cases (except Rs 1,000 fine for total income up to Rs 500,000) is too harsh. This will discourage people from filing IT returns. The government’s objective of ensuring maximum returns filed shall be achieved if these amendments are carried out in this Budget.
Mahesh Kumar, New Delhi
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