Expert Committee to simplify income tax laws headed by Justice (retired) R.V. Easwar has submitted its report to Union Finance Ministry. The 10 member committee has recommended simplifying provisions related to tax deduction at source (TDS), tax refunds and claims of expenditure for deduction from taxable income.
- Deletion of a clause in IT Act, 1961 that allows the IT department to delay tax refund due beyond six months.
- Treat stock trading gains of up to 5 lakh rupees as capital gains and not business income. TDS rates for individuals must be reduced to 5 per cent from current 10 per cent.-
- Dividend income should be treated as part of total income.
- Exempting non-residents not having a Permanent Account Number (PAN), but seeking to provide their Tax Identification Number (TIN) for the applicability of TDS at a higher rate.
- Most of the working processes of the IT departments should be conducted electronically in order to minimize direct human interface.