The Hindu : Front Page : Form 16 not required for filing I-T returns

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Friday, May 04, 2007
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Form 16 not required for filing I-T returns

Special Correspondent

New forms are to be submitted without annexures

NEW DELHI: Individual taxpayers will not be required to attach Form 16 certificate of tax deducted at source as the new forms (ITR series) for filing income tax returns are to be submitted without any annexure from the current assessment year.

According to I-T officials, tax assessees will only have to fill in the details as provided in Form 16.

The new ITR series tax return forms, to be introduced from May 14, are all meant to be filed without annexure, barring ITR-7, which is for charitable/religious trusts, political parties and other non-profit organisations.

Out of the eight new format forms being introduced for 2007-08, four of them are for individuals and Hindu Undivided Families.

The new I-T return form (ITR-1) meant for individuals having only salary and interest income, which is to replace the earlier Form 2F, does not require any cash-flow statement for the year.

For high value transactions, however, I-T assessees will be required to furnish information, the only difference being that, unlike earlier, the source of funds is not needed to be furnished.

This is because banks and other institutions routinely provide the Department with details of high value transactions.

In effect, high value transactions which individual assessees have to account for are: cash deposits of Rs.10 lakh or more in a year in savings bank account; credit card payments exceeding Rs.2 lakh; purchase of mutual funds for Rs.2 lakh and above; purchase of bonds or debentures for Rs.5 lakh and above; purchase of shares (public issue or rights) for Rs.1 lakh or more; purchase or sale of immoveable property for Rs.30 lakh and above and purchase of RBI Bonds for Rs.5 lakh or more.

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