New form will frighten away tax assessees: PHDCCI

Chandigarh, June 9 (UNI) Strongly criticising the new four-page Form 2F for filing income tax return by individuals and Hindu Undivided Families , the PHDCCI today said it would only create unintended problems for the assessees and could prove counter-productive.

Describing the move as ''complex and cumbersome'', PHDCCI Secretary General Bibek Debroy said it would be difficult for assessees to keep track of all the details required to be submitted under the new form like household expenses, loans, gifts, interest paid on capital borrowed for the house.

An assessee would not only have to mention investments eligible for exemptions/deductions but also have to give details of all receipts and expenses culminating in a cash flow statement.

Mr Debroy said it was ''too much'' to expect a layman to prepare a cash flow statement, which was a technical job. It appeared that to fill the new form, an assessee would have to take the help of a chartered accountant leading to additional expenditure, he added.

''The object of the income tax policy should be to improve the compliance and widen the tax base by simplifying and rationalising the system.'' he said.

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