Vivek Jalan
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The income tax department has received 6,500 suggestions from stakeholders over the past month on review of the Income Tax Act. Finance Minister Nirmala Sitharaman recently chaired a meeting comprehensive review of the Income Tax Act, 1961, consisting of Revenue Secretary CBDT chairman Ravi Agarwal,
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FAQ :
The income tax department has received 6,500 suggestions from stakeholders for the review of the Income Tax Act.
The main concerns regarding TDS/TCS provisions are their cumbersomeness, the current rates, and overlaps between different sections.
There are currently 71 sections under TDS, which are categorised into provisions for TDS/Direct Payment, specific deductions, and procedural aspects.
It is suggested that TDS rates should be lowered to reduce the generation of large refunds and the administrative work for the Income Tax Department. The interest on default or deferral of advance tax could be made higher.
There is a suggestion to eliminate overlap between TCS and TDS, such as between Section 194Q and Section 206C(1H), as having two parallel provisions for the same transaction creates an unnecessary burden on taxpayers.
Sellers are still required to incorporate details of sales under Rule 31AA for TCS purposes, even when the buyer has deducted TDS. This requires the seller to collect TDS details from the buyer, creating a difficult administrative task, and amendments are requested to exempt this requirement.
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