This was disclosed by Central Board of Direct Taxes (CBDT) chairman Ravi Kant on Wednesday. "We have received several suggestions on the issue", he said adding that modalities of the scheme were being worked out.

According to him, the board has received suggestions varying from giving priority in railway reservations to preference in allotment of telephone connection and admission in the schools.

The big taxpayers who already have 10 telephone connections and whose children are studying abroad want different kinds of `samman' said Ravi Kant. "The big assessees are even asking for dropping scrutiny of their cases," he added.

As the scheme is intended to give recognition to each taxpayer, be it small or big, the incentives will also be in proportion with their levels, he said.

The finance minister, Yashwant Sinha, had announced three schemes in the budget--Kar Vivadh Samadhan Scheme (for reducing tax arrears locked in litigation), Saral (simple one page income tax returns) and Samman (to recognise the honest tax payers).

In an interview to The Financial Express, Ravi Kant said that `Saral' forms will be introduced within a week. According to him, the assessees have been given the option to go in for single page `Saral' forms or continue using the old income tax returns.

He felt that the simplification of the forms will help widen the tax-base. The CBDT has set the target of 30 per cent increase in the taxpayers for the current fiscal from the existing level of 1.40 crore assessees.

In Mumbai, the number of new assessees has increased from 75,329 in fiscal 1996-97 to 2,80,386 in 1997-98. Upto August 1998, the department has added 1,10,795 new assessees while by the end of the fiscal, the department expects two lakh more taxpayers. The Mumbai circle has around 15 lakh income taxpayers.

When asked why the assessees against whom appeals have been filed by the income tax department are not allowed to come under Samadhan, Ravi Kant said that the scheme has been designed to meet only one objective of reducing tax arrears.

"Samadhan is for making a dent in the arrears which are mounting every year. Arrears are of different types but under the scheme we are targeting only the arrears caused due to litigation", he said.

According to him, the officers in the revenue department have been provided certain norms which have to be satisfied before launching litigation. "We have also directed them to review the cases in appeal and withdraw the same if revenue's stand is weak", he added.