Instead of considering concessions, exemptions and deductions the following may be considered:
Surcharge on taxes and the several cesses may be phased out. The tax rates could be raised instead.
The surcharge is discriminatory and very unfair to those with taxable income over Rs.10 lakhs. The marginal relief provided is only cosmetic. It can be levied only on the income in excess of Rs.10 lakhs, in case it cannot be abolished altogether.
2. The Department takes credit in boosting the direct tax collections and also in the lowest cost in its collections. At the same time, there is no tangible move in clearing the arrears of refunds. The imposition of Unique Transaction Number (UTN), Circular No.2 dt. 21.5.2009, Annual Tax Statement (26AS) etc. are impracticable and harsh on assessees.
3. Service tax, an obnoxious, tax cannot be extended to illusory and deemed services such as leasing of premises for commercial use. It is struck down by the Delhi High Court. Besides it is discriminatory and entails administrative costs, corruption and harassment. Some sanity should be brought in, in its administration.
4. The F.B.T. is illogical and exceeds its prescribed aim.
5. Tax audit reports and returns can be simplified. Same standard forms for all assessees can be avoided as most parts of them are not applicable to them.
Finally, there should be some check on Officers making aggressive and vindictive assessments which are reversed on appeal. A more human approach has to be adopted.
T.A.Rajagopalan, B.Sc., B.L., A.C.A.
Retired as General Manager incharge of Taxation and Legal matters from a public sector undertaking. Currently engaged in consultations. Occasionally rights on tax/other matters. Example:
In Business Line
Article - TDS Tedium - 22/01/2000
Letters - Workable Measures - 18/04/2008
Letters - Arguable Credit - 06/12/2008
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