ITR filing for salaried class have become difficult
Attention to Hon'ble Finance Minister Many positive steps have been taken to increase tax compliance and make the process of ITR filing simple, painless and seamless. But in doing so the ITR filing for salaried class have become difficult when capital gain is involved. Tax compliance is highest in salaried class and filing return using ITR1 form when there is no business income. Now in capital gain cases even there is no tax liability, tax payers are being forced to file return using ITR2 which is lengthy, difficult and complex form. In case of LTCG, even if LTCG is less than 1 lakh or loss in transfer of equity or equity oriented MF, one is forced to use ITR2 and fill up the Table 112A of Schedule CG which is not easy to fill it up without the help of professionals CA. This can practically be checked by Finance Minister or Revenue secretary to fill up the Form ITR2 themselves without taking any help from professionals by assuming there is sale of equity shares and redemption of MFs which was subscribed using SIP and LTCG is less than 1 lakh below taxable limit. It is quite logical when there is no tax liability on account of LTCG why force tax payers to fill up ITR2 and fill up the table 112A like giving full ledger details of the account without any tax revenue to the Govt. but only trouble to tax payers. It is submitted to Finance Minister to consider giving the option to tax payers to file return using ITR1 or ITR2 if there is no business income and no tax liability on account of STCG or LTCG on transfer of of equity or equity oriented MF. It is logical and justified. It will ease out the problems of salaried class/pensioners/others who are filing returns using ITR1. Even there is tax liability then ask only consolidated figures of purchase and sell in case of LTCG also like STCG to make the filing process seamless and painless. There is no point of asking script wise details for LTCG as it serves no purpose except records. In case of scrutiny the details can easily be asked and verified. No point of aping the west when our situations and conditions are entirely different from west. CBDT may like to look how to reduce cash transactions in case of professionals where there is large leakage of tax revenue. Cash transactions remains away from the Govt. financial system and no means to check it. Assuming if 60 to 70% of contract value is paid in cash, Govt. looses the tax revenue directly and no way to find it out. CBDT may consider to work innovative way to assess the income of professionals using AI and modern technology as on date no tools or methodologies are available. CBDT may also consider to extend the date for submission of FORM15H/G by July 2021 as physical submission to banks and post offices not possible due to lockdown and online submission not available in PSU banks and post offices. Govt. should make mandatory for all PSU banks and post offices to provide the on line submission of Form 15H, then it will ease the problem of submission of Form 15H specially for Sr. Citizens. Let the last 15H submitted for FY 2929-21 be applicable for first quarter of 2021-22. Looking forward for positive consideration of above points by Finance Minister.
Naveen
Naveen