Moneylife’s online survey on tax compliance and issues shows that one out of ten respondents indulges in tax avoidance, which can land them in trouble. TDS credit mismatch is still an issue for 40% of respondents
A survey conducted among Moneylife readers on tax compliance and issues shows that respondents have varying degrees of awareness of various tax implications. Almost 8% have income from ‘other’ sources (business, bank fixed deposit-FD, stock/ mutual fund dividends/ capital gain), but do not show these in their tax returns. Over 9% even file form 15G/15H to prevent TDS (tax-deduction-at-source), even though they owe tax. Both the cases can be termed as tax avoidance which is a serious offence as we mentioned on our Cover Story “10 ways your unpaid income tax may boomerang” .
Our online survey received 715 responses.
Three out of four respondents are aware of advance tax (different from TDS) payment rules. But, only one out of two is aware of what assets attract wealth tax. Even worse, only one out of three know about annual information return (AIR) and how it can affect them.
Two out of three respondents always view Form 26AS before filing tax returns. Surprisingly, only 62% of respondents find that Form 26AS TDS credit matches with the tax deducted in reality. It means you will have to check with the bank/company to ensure that it gets corrected; otherwise you will end up paying taxes you really don’t owe.
Only 61% get Form 16 (salary) and 16A (other than salary) on time and without any hassle. These forms are your right and, hence, demand it from the concerned bank/company. Your TDS certificate is your credit receipt for taxes paid. Nearly 40%, do not file Form 15G/15H to prevent TDS deduction if they don’t have any taxable income.
Here are the Survey results in detail…
Please read Moneylife Cover Story - 10 Ways Your Perfect Tax Return Can Boomerang
Noting that compliance need to be enforced, the finance minister said in cases of deviations, faith must be put on the company's board of directors and shareholders to take action against those violating laws
Finance minister P Chidambaram on Wednesday said that regulators should intervene only in cases of gross violations by companies or when there are clear cases of criminality so that they do not get over burdened.
Speaking at the Golden Jubilee celebrations of the Central Vigilance Commission (CVC), the minister said the new companies’ law aims to ensure transparency, better disclosures and better accountability.
"Regulator or an armed regulator must intervene and I urge that they do so only on the basis of gross violation or gross excesses or if there is clear case of criminality, Chidambaram said, adding "We must keep faith in self-regulation".
He further said that if any non-criminal deviation shall be investigated or regulated by regulator, that way regulator will simply be over burdened by work and regulation will fail.
Noting that compliance need to be enforced, the finance minister said in cases of deviations, faith must be put on the company's board of directors and on shareholders to take action against those violating laws.
Referring to the new companies act, the minister stressed on caution while exercising the powers. "While I strongly support the structure of the new Companies Act, I would urge caution in the manner in which powers are exercised," he said.
"I reiterate, we must bring self-regulation, we must enforce compliance, need to heed to board of directors and shareholders and only in exceptional cases should regulator intervene to punish gross grave cases of proven criminality," Chidambaram added.
The new Companies Act, which was approved by Parliament last year, has various provisions to protect investor interests and to prevent corporate misdoings.
Later replying to questions, Chidambaram also said, "We have a problem of corruption and we have to deal with it. The belief that India is most corrupt nation is completely wrong.
During the December quarter, Infinite Computer Solutions reported 46% fall in its net profit due to lower sales and higher forex loss
Infinite Computer Solutions (India) Ltd, an information technology (IT) service provider, reported a 46% fall in its third quarter net profit due mainly on subdued domestic sales and forex loss.
For the quarter to end-December, the IT service provider said, its net profit fell 46% to Rs15.39 crore from Rs28.74 crore, while its total revenues, including sales, decreased 18% to Rs89.11 crore from Rs108.19 crore, a year ago period.
During the third quarter, Infinite Computer Solutions said its forex losses increased 44% to Rs9.98 crore from Rs6.93 crore, a same period a year ago.
As on 31 December 2013, Infinite Computer Solutions reserves and surplus stood at Rs417.20 crore, an 8% increase from Rs385.09 crore than a year ago period.
The company has declared an interim dividend of 20% per share.
At 3.03pm Wednesday, Infinite Computer Solutions was trading 3.7% down at Rs119.9 on the BSE, while the 30-share benchmark was marginally up at 20,456.
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