Our columnist explains the provisions and the various rates of tax deductible at source
A client of mine once complained that if you ask two persons about Indian income tax law, you will get five opinions. This is specially true when it comes to tax deduction at source (TDS).
There is nothing as tangled and knotty as the provisions on TDS. While some TDS rates are specified in the individual section that deals with the tax treatment of the particular stream of income, some rates are included as part of a separate schedule. To make matters worse, these rates are modified in every budget. This results in a great deal of chaos and confusion.
The problem lies in the complicated nature of the tax laws. The authorities complain that less than 2 per cent of our population pays taxes. In an effort to bring more people under the tax net, the lawmakers simply end up complicating the law.
I don
