CII calls for changes in tax deduction system


CII recommended to the government to allow employers to adjust short or excess deduction of income tax in a financial year and hence obviate the need for employees to make claim for refund.
If the recommendation was approved by the government it would certainly help tax payers avoid the hardships of applying for a refund every year.
"To reduce the hardships of an assessee to obtain refunds of excess tax deducted, CII has also proposed intra-year adjustments of excess tax deducted be allowed," said a statement from the industry lobby.
Since presently there is no provision in the law by which the assessees are allowed to file revised TDS return, CII has also suggested that they be allowed to file revised TDS return.
The body also called for raising the exemption limit of TDS for certain categories like interests other than interest on securities, rent and payments to contractors and sub-contractors.
A uniform rate of TDS for all the payments (except for salaries) was also recommended.

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