Tax deduction
Sir,
Tax Deduction
Source (TDS) is a noble system for collection of
Income Tax (IT) by widening the tax-net and
minimising chances of 'adjustments' at time of
filing IT returns. Central Board of Direct Taxes
(CBDT) should further widen scope of TDS and it
should be applicable on proprietorship firms
also. But to encourage savings and for
convenience of retired persons, TDS must not be
applicable on interest on bank deposits. TDS
procedure should be simplified to have common
forms and same rates. There should be uniform
dates of depositing TDS collected and also of
filing of single consolidated TDS return for all
types of TDS. There may be a single consolidated
form no 26 abolishing form nos like 24, 25, 27,
26A-B-BB-C-D-G-J-K etc. TDS collected may have to
be deposited to the exchequer by 7th of coming
month. 30th April may be the last date of filing
a consolidated TDS return return instead of dates
like 31st May or 30th June etc. Issue of TDS
certificate should be only in one type of form
say 16 abolishing others like 16A etc.
TDS penalties @ Rs
100 per day of default are unreasonable because
big assesses find it advantageous to pay penalty
@ Rs 100 per day of default, while it is
excessively higher for smaller assesses. All IT
penalties including TDS penalties may be say @ 3
percent per month of tax for default period. For
reducing departmental work and to avoid penalty
proceedings being time barred, penalties may be
imposed in assessment orders.
While implementing
new forthcoming IT Act, further simplification
may be done by making calender year
(January-December) as financial year abolishing
British legacy of April-March financial year. It
will be in tune with most countries of the world
and also in accordance to expert LK Jha
committee's recommendations!
Yours etc....
Subash Chandra Agrawal
1775 Kucha Lattushah
Dariba Delhi 110006
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