Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: cpt :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: articles on VAT and GST in India :: VAT Audit :: list of goods taxed at 4% :: form 3cd :: TDS
 
 
News Headlines »
 Know how you can claim return of income in Form 26 AS case
 What you must know for tax filing this year
 How to file tax return if you have two Form 16s
 10 things you should know about Form 26 AS
 How to file income tax return without Form 16
 How to rectify income tax returns
 Income-tax (21st Amendment) Rules, 2017
 Deadline for filing income tax return nears; here are 10 common mistakes that you must avoid
 All you need to know about form 26AS
 How to file income tax return?
 7 changes that affect income tax return filing this year

FinMin`s TDS efforts pay off in FY2007-08
September, 22nd 2007
Tax deducted at source (TDS) accounts for as much as 50 per cent direct tax collections in this fiscal so far. This figure was 28 per cent and 35 per cent in 2006-07 and 2005-06, respectively.
 
The main reason for this increase is the widening of the scope and ambit of TDS. For example, the TDS rate was early this year hiked from 5 per cent to 10 per cent on brokerages, commissions and fees paid for professional services.
 
TDS, which is collected on expenditure towards salary, interest, payments to contractors, prizes and rent, now covers around 20 categories. 

UPWARD SURGE
Year TDS as %
of direct tax
2005-06 35
2006-07 28
2007-08* 50
(* During April-August, 2007)
 
TDS collections stood at around Rs 37,500 crore during April-August, about 50 per cent of the gross direct tax collections of Rs 75,244 crore. The share of TDS in the total direct taxes will be significantly higher in 2007-08, said a Central Board of Direct Taxes official.
 
A hike in TDS rates, better compliance by firms, along with an effective government machinery are the main reasons for the increase in TDS collections, said Gaurav Taneja, partner, Ernst & Young.
 
The share of TDS in the total direct tax collestions used to be 60 per cent around a decade back, but higher advance tax payments by corporations due to higher profits led to a decline.
 
However, the CBDT took steps to reverse the trend by expanding the scope and ambit of TDS. It made electronic filing of TDS mandatory for government offices and companies from 2006-07, leading to better compliance. E-filing of TDS has been extended to all TDS deductors from September 1 this year.
 
The TDS mechanism has also been strengthened by the creation of 12 new TDS commissionerates and a directorate to monitor the mechanism.
 
Government-to-government TDS collections have improved and an audit is under way to find reasons why TDS deduction is low in the departments under the Ministry of Defence and the railways.
 
States which were not crediting TDS collections to the Centres account in time have also started depositing cash timely after Finance Minister P Chidambaram wrote to state finance ministers.
 
The income-tax department also launched a special month-long drive in August to educate chief executives and chief financial officers of companies about filing of TDS returns correctly and to persuade non-compliant companies to file their returns.
 
Only 2.15 million TDS returns were filed by tax deductors in 2006-07. As there are 1.1 million active tax deduction account numbers (TANs) and returns are filed quarterly, the total number of returns during the year should have been 4.4 million had all deductors complied.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Integrated Software Solutions Integrated Software Development Integrated Software Services Integrated Software Solutions India Integrated Softw

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions