Showing posts with label remuneration to deductors of TDS. Show all posts
Showing posts with label remuneration to deductors of TDS. Show all posts

Tuesday, 26 February 2013

Very tedious TDS : Why not compensate TDS deductors for their tedious job?

Chapter XVII-B of the Income-Tax Act,1961 deals with deduction of tax at source(TDS) from specified payments and depositing the TDS with the Government.

TDS is very tedious indeed. It involves expenditure and effort in complying wit provisions-keeping records, deducting the amounts, depositing them within specified time limits and furnishing TDS returns.

Organisations have to  devote full-time staff to comply with it. These organisations (deductors of TDS) get no remuneration from the Government for their efforts. On the contrary, they are penalised for slip-ups by way of
  • penalties, 
  • interest and
  • disallowance of amounts paid without TDS deduction in computation of business income.
I am not suggesting one bit to do way with the penalty provisions. What I am suggesting is that the deductors be compensated . A remuneration may be allowed to them as a % of TDS deposited with Government in a financial year-say 5% of amounts of TDS deposited. It is uncivilised to make people work for you sans remuneration on the threat of penalties. This is nothing but bonded labour or forced labour. .