FinMin may widen scope of source-based taxation to plug revenue leakages: Report

By Religare
Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts
    FinMin may widen scope of source-based taxation
    Aiming to plug the revenue leakages in the system, the finance ministry may widen the scope of tax collection at source (TCS) to include transactions like real estate, foreign tours and mutual funds, besides credit card payments and luxury spends, among others, said a media report.
     

    The move, said experts, will improve reporting mechanism for transactions, curb flow of unaccounted money and bring down cash transactions.

    "In Budget 2012-13, we added new categories for payment of TCS and TDS. Some more areas might be brought under the ambit in the upcoming Budget. One per cent TCS might be levied, especially on huge cash payments, to track the money trail," said a finmin official as per the report.

    TCS is the collection of tax by seller from buyer at the time of making of payments, who then deposit that with the government and buyers get credit for the tax paid on their behalf.

    Experts welcomed the move saying that it would be great start to widen the tax base by bringing more sections under the tax net.

    Read more about: union budget 2013
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more