Budget 2022: Industry Chamber Assocham suggested to the government on Thursday to rationalize the rates of Tax Deduction at Source (TDS) in the upcoming budget. The Income Tax Act provides for multiple rates of TDS in different types of transactions. Because of this, doubts arise about the application of the correct rate, which leads to litigation.
Know what is Assocham’s suggestion
Assocham said in its statement that only one or two rates of TDS should be kept and it can be brought down to 0.1 per cent or one per cent. The industry body has suggested keeping only one or two rates for these provisions.
lawsuits can be reduced
“By doing this, the litigation related to levying the correct rate can also be reduced by entering the details of transactions in the database of the tax department,” it said.
TDS has 40 sections
Assocham said that at present there are about 40 sections related to TDS. Apart from this, many types of rules and forms have also been kept. However, most of the TDS deduction contributes only to certain sections.
what is assocham
ASSOCHAM was established in 1920. This organization includes more than 400 chambers and trade unions. ASSOCHAM is such a business organization which is mainly considered to be one of the top business organizations of India. It was started primarily with the aim of promoting both domestic and international trade.
The full name of ASSOCHAM is “Associated Chambers of Commerce and Industry of India”. It is also called “Indian Chamber of Commerce and Industry”. The main work of ASSOCHAM is to protect the industry and banking sector of India. The present President of ASSOCHAM is Balkrishna Goenka.
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