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TDS process to be simplified further
July 25, 2003 18:10 IST
The government is simplifying the procedure for filing tax deducted at source returns to assist taxpayers and mop up higher revenues.
"We are trying to reduce the number of forms required to file TDS," chief commissioner in Income Tax department S Talwar said at a conference organised by Indo-American Chamber of Commerce in New Delhi on Friday.
While terming TDS as a 'win-win' situation for, both, the taxpayers and the government, he said the department is trying to collect revenue not by way of enforcement but through assistance.
At the same time, he stressed on better compliance from the salaried class to ensure higher direct tax-to-GDP ratio.
"Direct Tax to GDP ratio in India is only 9.0 per cent as against 25 per cent in other emerging nations like Brazil and Argentina," Talwar said.
Dismissing claims that TDS laws in India are Draconian or stringent, he said the government was now trying to bring down the time for litigation by redressing it through tax tribunals that will come up soon.
The finance ministry has also stepped up refunds in the and has refunded Rs 12,000 crore (Rs 120 billion) last fiscal, Talwar said.
To further streamline operations, he said the tax department was developing a system for filing returns on the electronic mode.