Monday, June 5, 2006

Four pages of fear

Make no mistake: the moral plank on which Form 2F — the tax form that will replace the current variant — stands is not insubstantial. Despite tax reforms and technology, citizens of all kinds, even the salaried, continue to evade taxes. But going beyond the moral argument, Form 2F, notified on June 1, 2006, is a tool that allows the tax administration to look at salaried perks and expenses from the other side of FBT (fringe benefit tax), introduced last year. Form 2F, therefore, is like a mirror in which tax officials standing behind FBT statements released by companies are able to pin-point employees who show expenses like entertainment, official travel and suchlike and use those reimbursements to run their households.

Opinion in The Indian Express, June 05, 2006

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