In its pre-Budget memorandum submitted to the Finance Ministry, ASSOCHAM has proposed the rationalisation of TDS rates by suggesting a uniform rate of either 1% or 2% for all payments made to resident assessees. This proposal aims to reduce disputes caused by differing interpretations and enhance tax compliance. The memorandum also called for the decriminalisation … Read more
Expanding the coverage of the statement of financial transactions (SFT) — annual information returns, in its earlier avatar, obtained from various sources — that identify potential taxpayers by examining spending patterns is fine. The only limit on how much data is collected is the tax department’s ability to use what is collected, while safeguarding data … Read more
By Vivek SinghIncome tax, by its very nature, is based on a delicate social contract between the government and the taxpayer. Complexity of tax laws, high element of discretion in tax administration, and undue focus on search, seizure and probe have sometimes disrupted this social contract and made the process of tax collection somewhat adversarial … Read more