Annexure-less I-T forms leave assesses searching for space

Contrary to the income tax department's hopes, many tax payers continue to attach annexures (documents like tax deducted at source certificates etc) with the so-called annexure-less tax return forms introduced from this year.

In turn, such returns are also being accepted at the department's receiving counters.

Earlier this year, the tax department redesigned and renamed the tax return forms. Now called the Indian Income Tax Return (ITR) form series 1 to 8, all are annexure less, except ITR-7. The redesign has meant that more heads have been squeezed into the forms.

For instance, ITR-1, the return form for salaried individuals and pensioners, is now a single-page (two-sided) document. While doing away with annexures is a welcome move necessitated by the need to ensure that the forms can be mechanically read using optical scanners, the space crunch seems to have discomfited some users.

"There are only three boxes to provide details of tax deducted at source on interest income.I did not want to withhold any information and get into trouble so I added an annexure to the ITR-1 that gave all the details," said an elderly citizen, who did not wish to be identified.

In ITR-2, the return form for individuals and Hindu Undivided Families (HUFs) there is space for giving details of only one employer. "In case a person has worked in two companies, what is to be done? People are even attaching Form 16 with their returns," said a tax consultant.

Similarly, the space for giving details of deductions in ITR-1, 2, 3 (the latter for individuals and HUFs being partners in firms) is very small and no break-up can be provided.

Tax consultants say this is an important issue as it can impact the refund process also. "In such cases, the Income Tax office may seek the details to verify the refund claim. The tax payer will then have to run with the documentary proof to the officer," the consultant added.

"This issue is not very clear. There are no instructions in writing as regard what is to be done in cases, where a tax payer finds that the space is not enough to disclose all particulars," a senior Income Tax official said. The official pointed out that those tax payers who file their returns online can enhance the form to include more space for giving additional details.

However, tax payers counter this with the argument that not everybody can e-file their returns.

"A majority of individuals continue to file paper returns, since they are either not comfortable with Internet or have reservations about its credibility", the consultant added. e-filing is currently optional for individual tax payers, but has been made mandatory only for companies and businesses, professionals whose income exceeds a certain limit.

Businessmen and professionals who can afford it are taking the assistance of tax consultants to fill up their voluminous 20 page ITR-4 return. For them, the pendulum has swung in the other direction""compared with the single page 'Saral' form earlier, they now have to provide exhaustive details including their balance sheet, profit and loss account and other information in detail.