Tax system made paperless, TDS to be fraud-free Wednesday, February 9 2005 17:15 Hrs (IST) - World Time -
New Delhi:
Paving the way for a low-cost paperless filing of income tax returns and eliminating Tax Deducted at Source (TDS) frauds, the Government today (Feb 9, 2005) gave the go-ahead for setting up of the Phase-II of the Tax Information Network (TIN) at a cost of over Rs 100 crore.
Phase-II of TIN is aimed at facilitating e-filing of TDS returns by Government and corporate tax deductors to eliminate requirement to enclose copies of documents like challans and would result in significant reduction in cost of compliance.
Necessary legal changes have been made in the Income Tax with effect from April 1, 2005 in line with the setting up of TIN.
According to a release issued after the Cabinet meeting, the Phase-II would provide for collection of deductee-wise data in TDS/TCS (Tax Collected at Source) returns for eventual dematerlisation of TDS certificates, computerisation of Annual Information Returns (AIR) of high value transaction and integration of information relating to processing of returns of income.
Dematerialisation of TDS and TCS certificates will enable paperless filing of returns of income by the deductees on Internet, it said.
Cross verification of TDS and TCS deducted by the tax deductors vis-a-vis credit claimed by corresponding deductees will eliminate TDS frauds, the release added.
The Phase-II of TIN is estimated to cost Rs 101.25 crore over a period of three years.
Out of this, a sum of Rs 68.75 crore would be payable by Government and Rs 32,5 crore would be realised from the tax deductors, the release said.
