We keep hearing from the government that they want to come out with a simple income tax return form for individuals. We had once an Income tax return for individuals called as SARAL.
The objective of the simple form was to collect due tax, simple, easy to understand, feasible, quick, compliances on time and do not need the support of CA or any other tax professionals.
However thereafter such return has changed many times. Every time in the name of simplicity it is becoming complex. The requirements for providing information are increasing from time to time. It needs lots of paperwork, accounting, supporting documents etc. Not only returns but tax laws are also changing frequently. In addition, penal provisions are also becoming very severe even for mistakes by himself or others or delays etc. The remedies of corrections if any are also too tedious and expensive. Further, there are so many cross-checks with various external information. It is always not necessary to achieve full tally with the information provided by many agencies. In case of variances again assesses are in trouble even if it is not the fault of the assesses. This means people who pay right taxes are further punished which is completely illogical.
All these compliances consume lots of time and developed fear amongst individual taxpayers. Therefore individuals again started taking support of CAs and tax consultants to make sure that all necessary actions are taken. In spite of such support, there is no guarantee of full correctness and compliances. Thereby increasing the cost of filing returns. Individuals do not appreciate to incur additional costs of compliances and have to go for corrections even though taxpayers are not at fault in addition to paying high rates of taxes and very high rates of surcharges.
Assesses are with the support of tax experts are also not sure of full correctness and therefore the fear of punishments. It is a great cause of tension to the individual taxpayers.
There is also no forum for them to represent to GOI to convey their genuine concerns.
Hopefully, with this thought, some of the readers may be able to convey the concerns at the level of decision-makers. The decision-makers need to think through seriously and take appropriate actions so as to take out the fear of taxpayers.
Taxpayers want to pay right tax and contribute to the nation. Govt is also looking for achieving the same objectives. But taxpayers want hassle-free compliances. Governments may consider the simple way of compliances so as to achieve close to 100% compliances.
This will be good for individuals and also for governments.
We must appreciate the initiative taken by the government to issue a certificate of appreciations, digitisation and timely refund to the taxpayers. Such initiatives will lead to better compliances.
Let’s hope for a good relief to individuals for timely compliances, easy resolutions of issues and cost-effectiveness will be in the best interest of the individual taxpayers and the nation.
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