Seeking to reduce the compliance burden on small businessmen and professionals, the Union Finance Ministry is expected to soon unveil a simpler income tax return form called “Sugam.”
“Sugam is currently being examined by the Union Law and Justice Ministry and will be notified soon. Finance Minister Pranab Mukherjee, in his budget speech for 2011-12, announced the new simplified return form ‘Sugam’ to reduce the compliance burden of small taxpayers who fall within the scope of presumptive taxation,” an official said.
The new form is in line with the government’s effort to make filing of returns simpler and user-friendly. The filing of returns for individual salaried people was simplified significantly with the introduction of SARAL-II form. This has enabled individuals to enter relevant details in a simple format in only two pages.
Presumptive taxation involves the use of indirect means to ascertain the tax liability, which differ from the usual rules based on the taxpayer’s accounts.
Under presumptive taxation, a person carrying on business will not be required to get his accounts audited if the annual total sales, turnover or gross receipts is less than Rs. 60 lakh.
The limit was increased by Mr. Mukherjee in the 2010-11 budget from Rs. 40 lakh.
The presumptive tax limit in the case of professionals was increased to Rs. 15 lakh from Rs. 10 lakh.
Source: The Hindu