No expected relief in TDS (the most tedious provision of Income-tax) in MODI BUDGET could be seen and thus, expected ‘Achhe Din’ could not be seen in the budget of this new government.
When TDS on interest u/s 194A of the Incometax Act, 1961 was introduced, the minimum limit was fixed at Rs. 4,000/- which was increased to Rs. 5,000/- at least w.e.f 01.06.2000 ( and Rs. 10,000/- in case of Bank Interest w.e.f. 01.06.2007) and on that time basic exemption limit of taxable income was around Rs. 40,000/-. Now, basic exemption limit of taxable income has been increased to Rs. 2,50,000/- but TDS limit u/s 194A for interest is still at Rs. 5,000/- which is totally irrational.
This is same position in case of TDS on commission u/s 194H of the Incometax Act, 1961. The minimum limit was fixed at Rs. 5,000/- since 01.06.2001 and on that time basic exemption limit of taxable income was also around Rs.40,000/-. Now, basic exemption limit of taxable income has been increased to Rs. 2,50,000/- but TDS limit u/s 194H for commission is still at Rs. 5,000/- which is totally irrational.
Even in professional world, TDS is understood as a tedious job and for deductor also, it is thankless and pain full job. In maximum small matters, it is trouble creater only. A deductor has been loaded with responsiblity of deduction with interest and penalty and a deductor has to pay and incurred the cost for this govt. job for no thanks and on the other side, even a small deductee has to incur the cost for getting the refund of this TDS by filing the Incometax Return. Entire process is very tedious and costly.
Entire India was expecting, some revolutionary, rationalisation and simplification steps from Modi Govt. but as it appears in TDS matters, there is no difference in the vision of this BJP Govt. in comparision to Congress Govt. Still therer is time for Modi Govt. to give the relief to the Indian tax payers who have been unnecessarily burdened by tedious provisions of TDS by rationalizing the various provisions of Income-tax Act 1961. Author – Karishma Moondra Source- www.incometaxonline.co.in