Income Tax department's bid to simplify TDS process

The TDS wing of Mumbai Income Tax Department has decided to submit a detailed report to Central Board of Direct Taxes (CBDT) with its recommendations on various issues dealt with taxpayers.

On Wednesday, the department held a proactive meeting with the Standing Committee on Tax Deducted at Source (TDS).

The committee has 11 industrial/traders association including CII, ASSOCHAM and Bharat Merchants Chambers. This meeting discussed grievances and suggestions from taxpayers on TDS.

Simplification of TDS process, voluntary compliance by assessees, reduction of compliance cost, making PAN mandatory for taxpayers, delivering TDS statement online, making the process transparent and efficient, and making life easier for pensioners were some topics discussed.

Speaking to IndiaToday.in, Commissioner of Income Tax (TDS) V.K. Pandey said, "We will submit a report to CBDT soon. Our focus is to make entire TDS process online. We would use more technology for TDS verification and payment transactions on daily basis for the benefit of taxpayers and department as well."

Some of the issues the I-T department has taken seriously and will recommend before the board.

"TDS statement should be made online to avoid wasting taxpayers' time. It will be difficult for the department, but we will strongly recommend it. In terms of transparency and efficiency, the department has proposed that we issue a certificate to taxpayers on how much percentage of the interest they have to pay. We will make it online by issuing unique code numbers. If the department has only query, then it would be asked by email. SMS will be generated so that taxpayers can reply by a deadline. Hopefully, by year-end, taxpayers will able to use our website for TDS transactions."

For senior citizens, PAN card is a must even if they show Form 15G against the taxable amount on their pension income.

The Mumbai I-T department has formalised a three-member committee (which includes an I-T commissioner) that will countercheck the draft copy prepared by the TDS commissioner in the next few days.

Once done, a final recommendation report will be sent to CBDT within the next 15 days for the final decision.

Once it is approved by the CBDT, the suggestions and recommendations will be implemented.(India Today)