Can TDS provisions be made less tedious?

D. Murali Chennai: You can blame it on the abbreviation, but TDS (tax deduction at source) does rhyme with tedious, as if in empathy with the plight of tax students and practitioners. And, to add to the dreariness of the exercise involved in the levy, there is a perception that the TDS rates are too high, and that the Government is bent on keeping the rates at a particular level, since the collection has cash flow impact.

No, not all the rates are high, says Ketan Dalal, executive director, PricewaterhouseCoopers, Mumbai. For example, the rates on salaries mirror the normal tax rate; and others, such as on interest or several cross-border payments, seem to be appropriate. He concedes, however, that it maybe appropriate to reduce the TDS rate on property rental from 20 per cent to 10 per cent, as the recipient is entitled to a standard deduction of 30 per cent on such income, as also deduction for interest on funds borrowed for acquiring/reconstructing properties.

Removal of ... more.

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