Apropos Dilasha Seth's report, "Double taxpayer base to 10mn, PM tells taxmen" (June17), it is an irony that while the economy is growing, the taxpayer base is expanding at a much slower rate. This warrants the need to eliminate flaws in the system.
The rate of taxes, taxable income and concessions in place need radical changes if people are to pay taxes without coercion. The approach of tax officials has to change to ensure they do not discourage people from paying taxes correctly.
Tax evasion is rampant because of loopholes in the present norms. To augment tax collection, the government should strengthen the systems and procedures related to tax deducted at source (TDS), filing of returns and their timely scrutiny, recovery of arrears and payment of refunds.
The returns of self-assessees - those not paying TDS - should be scrutinised, as they are more prone to underpayment or evasion of taxes.
To widen the tax base and avoid tax evasion, radical reforms are necessary. The vigilance system has to be strengthened to curb graft. Officials who are honest and are achieving their goals must be rewarded.
V S K Pillai, Changanacherry
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
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E-mail: letters@bsmail.in
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The rate of taxes, taxable income and concessions in place need radical changes if people are to pay taxes without coercion. The approach of tax officials has to change to ensure they do not discourage people from paying taxes correctly.
Tax evasion is rampant because of loopholes in the present norms. To augment tax collection, the government should strengthen the systems and procedures related to tax deducted at source (TDS), filing of returns and their timely scrutiny, recovery of arrears and payment of refunds.
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The government should consider advancing the deadline for filing returns to May 31 and ensure that taxpayers get Form16A before April 30. The Form 26AS statement should reflect the amount credited to the taxpayer and the TDS deducted without discrepancies.
The returns of self-assessees - those not paying TDS - should be scrutinised, as they are more prone to underpayment or evasion of taxes.
To widen the tax base and avoid tax evasion, radical reforms are necessary. The vigilance system has to be strengthened to curb graft. Officials who are honest and are achieving their goals must be rewarded.
V S K Pillai, Changanacherry
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number