According to the Confederation of Indian Industry (CII), there are number of provisions for tax deduced at source (TDS) that needs to be rationalised under one single section by consolidating the various sections, such as stipulations and rates for exemption limits. There is a large scope for further improvement in the TDS system and the chamber hopes that the same would be taken care of in the forthcoming Union Budget.
The chamber has observed that tax authorities take a conservative view resulting in blocking of money in TDS of non-resident contractors due to excessively high estimate of profits.
