Govt to soon notify 'Sugam' IT form for small taxpayers

The Finance Ministry will soon unveil the simpler income tax return form 'Sugam', which is aimed at reducing compliance burden on small businessmen and professionals. "Sugam is currently being examined by the Law Ministry and will be notified soon," a Revenue Department official said. Finance Minister Pranab Mukherjee in his budget speech for 2011-12 had announced the new simplified return form 'Sugam' to reduce the compliance burden of small taxpayers who fall within the scope of presumptive taxation. The 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 return for individual salaried people has already been simplified significantly with 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 tax liability, which differ from the usual rules based on the taxpayer's accounts. Under India's presumptive taxation, 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 Mukherjee in 2010-11 budget from Rs 40 lakh. The presumptive tax limit in case of professionals was increased to Rs 15 lakh from Rs 10 lakh. - www.financialexpress.com