Friday, February 21, 2014

Why TDS is so complicated

Anybody who deal with the Tax deducted at Source Provisions in Income Tax Act knows the practical difficulties in complying with the various formalities connected with deducting TDS, paying the tax, filing TDS returns and ultimately issuing TDS certificates to the deductee.

To comply with the TDS provisions in Income Tax, one should not only be well-versed in Income Tax TDS sections but he shall also be a master in technical side of computer softwares.

To file a TDS return with 100% accuracy and satisfy the Income Tax Laws is next to impossible!

It is true that Income Tax law is complicated but what about the technical side of efiling TDS returns? Why the efiling TDS returns so complicated? 

Can an average citizen of India understand the TDS return rectfication process?

What about the penal provisions in TDS? It is so harsh. 

What is the need of TIN FCs?

Government should take steps to make efiling TDS return simple just like how we file Income tax returns (ITRs)

Why can't, we, Chartered Accountants, suggest the Government to allow the tax payers to file TDS returns directly (just like how we file income tax returns) into the Income tax Departemnt website rather than file through the TIN FCs. The filing of rectification statement shall be as simple as filing a revised ITR return.

This will save a lot of valuable time for the tax payers as well as Chartered Accountants.