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New Delhi, Feb. 19: Filing of tax returns could become much easier for India Inc with the government planning to do away with the current norm of filing separate returns for the controversial fringe benefit tax (FBT) and income tax.

Instead, a combined tax return form for both the taxes is being formulated.

Sources said the combined tax return would contain all particulars for both the taxes (income and FBT), even though, in spirit, the two are different. While income tax is evaluated on revenues of the company, FBT is more of a tax on expenditure.

Sources said the government wants to simplify matters and felt a combined tax return would bring FBT under the income tax ambit. ?For most assessees, the separate filing of returns means two different assessments for one year,? sources said.

In the Finance Bill 2005, a whole new chapter on FBT was added, which included those governing the filing of a separate return, advance tax, separate assessment, reassessment, interest for delayed payment and penalty, refund of excess tax payment and other related aspects.

Under the existing norms, every employer who has provided the fringe benefits to his employees is required to file returns of fringe benefits irrespective of whether it is filing its own income tax returns under Section 139 of the act.

If the return for FBT is not submitted, the assessing officer can ask the employer to file it.

Further, an employer can file a revised return in case he discovers any omission or wrong statement in the one already filed.

The government had come out with the controversial tax on fringe benefits given to employees in its last budget. However, protest from companies as well as salaried tax-payers forced it to issue notifications, which diluted the tax regime to some extent. However, it still maintains the tax is a necessity.

The government, which has already collected Rs 1,750 crore from FBT, intends to garner Rs 3,000 crore from the measure this fiscal.