Form 16AA ambit may be expanded

The revenue department is looking at expanding the ambit of Form 16AA, which applies to salaried class with income from salary not exceeding Rs 1.5 lakh.

Tax payers using this form should have no other income on which tax has been deducted by any other person. This is being done to accomodate people with additional marginal incomes.

Speaking to reporters, Revenue Secretary KM Chandrasekhar said the department was looking at expanding the ambit to include other marginal incomes and perhaps also raise the limit. "We are looking at making this easier," he said.

In response to a question, Central Board of Direct Taxes Chairperson MH Kherawala said between 8,000-10,000 responses had been received to the recent notice seeking public comments regarding the removal or continuance of exemptions and deductions under the Income Tax Act, 1961.

Similarly, various industry associations had sent in their comments on the recent draft instructions seeking to distinguish between shares as stock-in-trade and as investment. The date for sending comments on this subject has been extended to 15 June.

Officials said the scope of the annual information return could be expanded soon. "We have written to our field formations on the subject and expect replies by July," they said.

They added that no bank account details were being sought at the moment in Form 2F, the new income-tax return form for salaried individuals.