Deloitte has released a survey on Wednesday saying a vast majority of income tax filers want simplified ITRs for individuals, easier way for computing incentives and deductions, and simplification of TDS framework for ‘one rate one section’.
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Deloitte has released a survey on Wednesday saying a vast majority of income tax filers want simplified ITRs for individuals, easier way for computing incentives and deductions, and simplification of TDS framework for ‘one rate one section’.
Deloitte’s Income-Tax Policy Survey also suggested doing away with the requirement of issuing Form 16A as the TDS information is already reported and available in the Form 26AS and AIS of the recipient.
Nearly three-fourths (73 per cent) of respondents advocated for simplifying the computation methodology of the fair value of assets and other property as well as the computation of foreign tax credit.
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The survey suggested limiting the number of sections with regard to withholding tax, classifying payments into two-to-three distinct and non-overlapping categories, and ensuring that each section has only one rate, which will significantly reduce the burden of compliance without any major loss in tax collections from a tax administrative perspective.
The Income Tax Policy Survey involves an online survey of over 320 industry professionals in organisations across multiple industries, including C-suite, directors and presidents from the finance and tax functions; general managers (finance/tax), and vice-presidents (finance/tax); as well as finance and taxation managers.
A vast majority of respondents (76 per cent) rooted for simplification in computing incentives and deductions, reflecting taxpayers’ concern in understanding and computing eligible incentives/deductions.
As per the survey, for 73 per cent of respondents, simplification of the tax audit report is a major ask, indicating a high level of complexity and compliance burden. About 68 per cent of respondents laid emphasis on the requirement to ease preparing and filing of TDS/TCS returns.
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