A annoyed reader asks, “Sir, I lastly managed to file my ITR this time after a number of makes an attempt. Why do we have now to undergo this train every year? Is it attainable to do away with it?”
It might be attainable to eradicate many (definitely not all) return submitting compliance necessities, however how many people are prepared to just accept the results? I’m pretty positive many would dismiss the next as naive. Take, for instance, the case of a salaried worker with capital features and a few fastened deposits.
Already, the federal government is aware of the particular person’s full wage. Suppose it mandates that each one capital market-linked redemptions be reported to the earnings tax workplace (this contains all trades in a broking account and so on.). Suppose all SB account, FD and RD particulars (simply the curiosity for a monetary year- which anyway must be declared) linked to the PAN are additionally reported.
Simply to be clear, there isn’t any lack of privateness right here. Solely information that should be declared is reported by the establishment dealing with the funds.
The taxman now has all the required data to compute the tax and ship a requirement for it. This may be despatched every quarter (coinciding with the advance deadlines), and the ultimate demand for any leftover tax by the primary week of April.
Then the assessee solely has to make sure the demand is totally paid and guarantee by the top of the monetary yr, any leftover tax (from unreported transactions) is paid. There generally is a grievance redressal mechanism for any extra demand.
On this digital age, that is simply attainable when most transactions are digital. Certain, there will probably be hiccups, as all the time, which will be ironed out in time.
Already we’re transferring in direction of a brand new tax regime the place virtually all tax deductions are defunct. This makes the method of sending out tax demand a lot simpler. As soon as the system begins operating easily, there could be no have to “file” IT returns for relevant people, and except there’s a mistake within the demand, there isn’t any want for refunds.
Sure, if one has rental earnings, enterprise earnings or skilled earnings, return submitting remains to be obligatory, however even in these instances, the demand mechanism would considerably cut back effort. In such instances, the return submitting will be made interactive with out jargon and eradicate completely different types (ITR1,2,3,4, and so on.). We’ve got already taken a big step towards this.
Put up workplace deposits, insurance coverage insurance policies and RBI bonds must also come underneath periodic reporting for this work. Naturally, it’s simpler mentioned than completed, however it’s, in precept, fairly attainable. We’ve got all of the fintech know-how to get it completed.
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