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RBI to study quick transfer of tax challan from banks
New Delhi, Aug 03: Reserve Bank of India has constituted a High Powered Committee for setting up facilities for online transmission of tax payment data from banks to the income tax department.
New Delhi, Aug 03: Reserve Bank of India has constituted a High Powered Committee for setting up facilities for online transmission of tax payment data from banks to the income tax department.
This is in wake of the recommendations of the Task Force headed by Vijay Kelkar which had recommended a revised procedure for collection of taxes and their accounting.
Under the new procedure it is proposed that a tax payer will be required to fill up only one copy of the challan while making payment of the tax in the bank.
Under the new procedure it is proposed that a tax payer will be required to fill up only one copy of the challan while making payment of the tax in the bank.
The present requirement of filling up four copies of challan for payment of direct taxes is proposed to be given up, according to finance ministry sources.
Under the new proposal, banks will be networked to Tax Information Network and will receive payment on line from the tax payers, the sources said adding it is also recommended that since the Tax Information Network will digitise all TDS returns, the requirement to file TDS certificate alongwith the return of income may also be dispensed with.
It is to implement these suggestions that the RBI has set up the committee.
Bureau Report