The system of tax deduction at source (TDS) could be expanded further
to include more business under its domain. This means more types of
business will have to deduct the tax, before making payments to parties.
The revenue department is also considering a proposal to restructure the administration of the TDA set up.
At
present, TDS includes income from salary, interest on securities,
dividend from domestic companies, prize money from lotteries, etc.
Budget
2007-08 has already proposed bringing a few more income heads like
payment to contractors by individuals for business purposes under TDS.
According to sources, the revenue department is also planning to
strengthen the computerisation network of TDS, which would help
increase its database.
The department is also planning to set up
commissionerates for TDS. In order to check tax evasion, it will set up
a proper TDS structure by strengthening existing TDS commissionerates
and opening new ones in the four metros and tier II cities. All the
commissionerates will also be required to file TDS data electronically,
so that the information is verified with the tax returns filed by
taxpayers.
Tedious Changes
• TDS may be expanded to include income from more trades
• Computerisation network may be strengthened to increase database
• Commissionerates may be set up to check tax evasion
The
proposals form a part of a report on TDS restructuring. The department
is of the view that the move will help to strengthen the TDS system and
increase compliance levels amongst taxpayers. “We are looking at ways
to expand our tax base and generate more revenue. This report is one of
the proposals we are discussing,” a finance ministry official said.
With
the direct tax collection target fixed at Rs 2,67,175 crore for
2007-08, a 16% increase over last fiscal, the Central Board of Direct
Taxes is already looking at measures to increase collection. It is
planning to focus on the use of investigative measures like raids and
surveys to raise both collection and compliance.
Banks
want RBI to pick their auditors January, 05th 2007 In a strange turn of
events, nationalised banks have spurned a Finance Ministry offer to let
them choose their own auditors. They would rather have the RBI pick
their auditors.Most nationalised banks are believed to have conveyed to
the Reserve Bank that they would rather let it appoint auditors for
them instead of appointing their own auditors. Last year, the Finance
Ministry granted PSU banks the power to decide their own auditors. This
drew protests from CAs, who felt banks would appoint auditors who would
favour them. That seems to have pushed the banks to ask the RBI to do
the choosing. Sunil Goyal, Chairman, Western Region , ICAI says, "There
are many CA firms in the eligible category, for banks to choose 40 or
50 among them would have been difficult." Until now, the RBI appointed
thousands of branch auditors for PSU banks. The ICAI shortlists about
20,000 CA firms from all over India and forwards the list to the RBI.
The RBI then allots each PSU bank a few thousand auditors to audit
their various branches. This ensures wide distribution of work for CA
firms, which could have been disturbed, had banks agreed to appoint
their own auditors. But now, CA firms can breathe easy.Money Bombay
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