India is reviewing the entire gamut of withholding tax provisions in line with the country’s overall thrust to simplify the tax structure to make it easier for businesses and reduce disputes. There are several tax deducted at source (TDS) provisions with different thresholds and multiple rates. There are about 33 sections in the Income Tax Act dealing with TDS rates that range from 0.1% to 30%. The tracking of transactions can still be achieved without putting undue pressure on compliance and working capital, he said. The idea was to widen the tax base as TDS provisions help the government capture additional information, helping to plug revenue leakage.

Source: Economic Times January 12, 2024 13:16 UTC