oppn parties Eashwar Committee Recommendations on TDS Should be Adopted

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  • Crude prices fall sharply as Saudi Arabia assures normal production in a few weeks. Prices fall by 5.4% to $65.30 per barrel
  • Sensex tumbles 700 points over fears that rising crude prices will deal a body blow to the tottering Indian economy
  • As Rajeev Kumar fails to appear before the CBI despite several notices, the agency forms a special team to locate and apprehend him
  • S Jaishankar says Pakistan is not a normal neighbour and its behaviour is a "set of aberrations"
  • External Affairs Minister S Jaishankar says PoK in Indian territory and the country hopes to have physical jurisdiction over it one day
  • Barasat Sessions court near Kolkata rejects Rajeev Kumar anticipatory bail application citing lack of jurisdiction as the reason
  • PM Modi celebrates his birthday with Narmada aarti and later has lunch with his mother.
  • All 6 Bahujan Samaj Party MLAs merge with the Congress in Rajasthan
  • Bengal CM Mamata Banerjee to meet PM Modi on Wednesday, state issues on the agenda
  • Pakistan to open Kartarpur corridor on Nov 9
  • Rajeev Kumar, ex-police commissioner of Kolkata and wanted for questioning in the Sarada scam does not appear before the CBI despite the state administration requesting him to do so
  • Supreme Court asks the Centre to restore normalcy in J&K but keeping national interest in mind
  • As Trump accepts the invitation to attend a programme in Houston with PM Modi, India rushes to settle trade issues with US
  • After drone attack on Aramco's Suadi Arabia facility, oil prices jump 19% in intra-day trading causing worries for India
  • Imran Khan raises nuclear war bogey again, says if Pakistan loses a conventional war, it might fight till the end with its nuclear arsenal
Sunni Wakf Board and Nirvani Akhara write to the Supreme Court for a negotiated settlement to the Ayodhya dispute
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Eashwar Committee Recommendations on TDS Should be Adopted

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Sunil Garodia By our team of in-house writers.
The Eashwar committee recommendations for revising threshold limits of TDS and lowering the tax withholding percentage are very sensible. The government will do well to incorporate them in the ensuing budget proposals. These limits were set years ago and the value of the rupee has gone down significantly since then, making them seem almost laughable. The committee, while hiking the limits, has not been consistent. For instance, it has recommended the limit of receipts from technical or professional fees to be revised to Rs 50000 while that of receipts from brokerage or commission has been set as Rs 15000 only. One feels that the latter figure is too low. As this is business income, the limit should have been Rs 50000 and the withholding rate should have remained 10%, like in fee from professional services.

While the recommendations, if adopted, will address a long overdue grievance, one feels that to make the act user friendly, there should be an in-built mechanism where these threshold limits get updated every three years by a set percentage. This is the way several agreements are drafted, like rent agreements for instance where the rent is increased by 10 or 20 percent every three years. If tax laws were to update by themselves in this regard, it will be a huge relief to taxpayers and will obviate the need to set up committees to look into this.