FM asks officials to design new simple Income Tax forms

New Delhi, Jan 8 (PTI) Indian Finance Minister Pranab
Mukherjee wants the income tax forms to be simple so that a
taxpayer can understand his liability without consulting
experts or chartered accountants.
"I have told tax experts and colleagues (engaged in
formulation of the Direct Taxes Code), that I would like to
understand Income Tax by reading and understanding the forms
which I am filling. I would not like to go back to any tax
consultants or chartered accountants or tax advocates, if I
can understand the income tax that I have to pay," he said
at the Pravasi Bharatiya Divas, an event organised for
non-residential Indians, here Friday.
Mukherjee said Direct Taxes Code is currently at the
draft stage and will be implemented from 2011-12.
The code, on which the Indian government has invited
comments from the public and stake holders, will replace the
archaic Income Tax Act and simplify the tax procedures and
have a lower tax liability by reducing exemptions.
The draft has evoked sharp criticisms from various
quarters for its proposals such as taxing withdrawal from
long term savings, doing away with tax rebate on housing
loans, change in methodology of calculating minimum alternate
tax among others.
Mukherjee had earlier assured the people that grievances
would be addressed before a bill in this connection is tabled
in Parliament. PTI