Now, the Taxpayers can be relieved, because the Finance Ministry has decided to introduce a simpler income-tax returns form for assessment year 2008-09, in place of last year’s Form 2F which left many annoyed as it sought details of personal expenditure.

After receiving various representations from Public and Standing Committee, they have decided to withdraw the cash flow statement, told by finance minister Chidambaram, while announcing the launch of the new forms. The parliamentary standing committee asked the government to stick to the previous forms, Saral only, by terming the new form as burdensome and lengthy.

However, Chidambaram, told that the one page from “saral” is not very friendly to taxpayers and calling it “saral” was obstacle as it has to many annexure’s. the individual taxpayer would have to report transactions, which are captured in annual information return, for example, sale or purchase of house above Rs.30 lakh is reported under AIR by registrars.  Now the new form, has a separate column for stating these transactions, any individual, who has bought or sold a house over Rs.30 lakh will have to mention it in his income tax return. The income tax department will match the information received from the tax payers and through mail from registrars, which helps them to identify current information.

The new series of forms will be in ITR Series i.e. the ITR-1 and 2 will replace the return forms for individuals like Form 2, 2D, 2F and 16AA. The ITR-3 will replace From 3, ITR-4 will replace Form 2, ITR-5 will replace Form 2, ITR-6 will replace Form 1, ITR-7 will replace Form 3A and ITR-8 will replace Form 3B.

Mr. Chidambaram, Finance Minister said that “the new forms from ITR-1 to 6 and 8 are annexure less but only from ITR 7 will have the annexure’s which is meant for Charitable and political organizations. The government is also seeking comments from Institute of Chartered Accountants of India before notifying them on May 14.