IT surcharge

Sir, - The Finance Bill proposes to increase the surcharge for individuals and Hindu undivided families from 10 to 15 per cent where the total income exceeds Rs. 1.5 lakhs. This surcharge is also proposed to be levied under Section 2(5)&(6) of the Finance Bill in respect of tax to be deducted under various sections such as interest under Section 194C, payment to professional persons under Section 194J of the I.T. Act, etc.

A confusion has been created among the persons liable to deduct income-tax as to how they are to know that the income of the recipient exceeds Rs. 1.5 lakhs. Some of those responsible for TDS are likely to err on the side of the revenue by deducting surcharge at 15 per cent even if the income of the recipient may never exceed Rs. 1.5 lakhs. This would involve harassment to the recipient of such income as well as infructuous work for the I.T. officials as many income-tax refund applications would be required to be filed to claim the extra deduction of the surcharge. Most of the tax-payers are with income below Rs. 1.50 lakhs.

Hence, it is suggested that suitable amendments may be made in the Finance Bill to provide that the surcharge for all cases of TDS would be at 10 per cent only.

R. N. Lakhotia,

New Delhi

Send this article to Friends by E-Mail

Section  : Opinion
Previous : Insurance Act
Next     : The gathering storm in Bihar