6 min read.Updated: 26 Nov 2021, 01:20 AM ISTVikas Vasal
A look at ‘tedious’ nature of tax deduction at source provisions and the need for rationalization and simplification of provisions
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The Indian Income-tax Act, 1961 (the Act) contains expansive provisions relating to tax deduction at source (TDS). These provisions mandate the withholding of certain percent of the amount paid / payable by the payer (deductor) to payee (deductee), as taxes. The TDS provisions were introduced to tax the income at very source, ensure that transaction trail is available, avoid any tax leakages and help augment revenue collections throughout the financial year.