Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Budget Extravaganza »
Open DEMAT Account in 24 hrs
 All outstanding personal tax demand notices up to Rs 25,000 withdrawn till FY 2014-15 in Budget 2024
 Budget 2024: Why there is an urgent need to hike Section 80C deduction ceiling for income tax benefits
 Budget 2024: Long term capital gains tax and the holding period for different assets explained
 No increase likely in income tax rebate in interim budget: FinMin official
 Income tax expectations for Budget 2024: Focus on medical insurance and capital gains tax
 Whole world looking at India s budget with hope
 Pre-budget expectations for salaried individuals on tax relief Budget 2023
 Centre expected to introduce new income tax slabs in Budget 2023: Report
 Budget 2023: Pre-budget expectations for salaried individuals on tax relief
  Will non-extension of tax benefits for affordable housing impact sales Budget 2022
 Budget 2022 allows 2 more years to file ITR; Know the whopping cost of delay in filing

How Budget can make taxpayers happy...without cutting rates
January, 30th 2017

Process of filing income tax return has been simplified over the past few years. From e-filing of tax returns, which was made mandatory for individuals having a taxable income of over Rs 5 lakh for FY 2012-13 onwards, we have moved to e-assessment of I-T returns. A pilot has been launched in a few cities. Yet, compared to what some other countries have done, lots more can be done to make tax payments easier and may be even rewarding. We highlight four global best practices that India can adopt, starting from this year's budget.

Pre-filled I-T returns : Wouldn't it be nice, if all that you had to do was to sign off on an I-T return sent to you by the I-T office?

In Denmark and Sweden, pre-filled I-T returns are sent to taxpayers detailing their taxable income and I-T dues. Taxpayers can intimate their acceptance of the pre-filled return by email, phone, SMS or on paper. In Denmark, a `no response' is deemed to be acceptance of the I-T return. In Australia, all financial transactions are linked to the taxpayer's identification number, which is made available to the Australian tax authorities and is added in the individual's online I-T return form. Other countries, which have a pre-filled I-T return mechanism in place, in some form or the other, include Chile, Estonia, Finland, Iceland, Norway, Slovenia and Spain.

Suggestion: In India, the taxpayer's personal information is available based on the past I-T returns. In addition, details of tax deduction at source are available in Form 26AS (which is the annual tax statement available on the I-T department's tax portal). We could take this a step further as PAN is linked to almost all transactions. Data drawn from banks (such as interest on FDssavings accounts, interest paid or repayment of loans); data from employer on salary earned, to name a few, could be easily collated and a pre-filled return made available to the taxpayer.

E-assessment: It reduces interface with the I-T authorities, saves time and is believed to even cut down on corruption.In Brazil, a multi-layered tax digitisation project (called SPED) enables tax authorities to make inquiries via email, including providing a link to the tax authority's web page, where taxpayer's responses can be submitted.

Suggestion: India has taken a step in this direction by way of a pilot. This needs to be rolled out pan-India and various drawbacks in the existing system removed.

Restructuring of I-T slabs: Fewer I-T slabs or even a flat tax rate without additional surcharge or cess simplifies I-T calculations and provides administrative ease. Less complexity translates into more tax compliance and even broadening of a country's tax base, something which is sorely needed in India.

Countries such as the UK and Denmark have a three-tier I-T slab structure. Singapore, Romania, Switzerland, Czech Republic, Hungary and Saudi Arabia have a flat tax rate applicable at all levels of income.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting