E-tax Payment May Soon Be Compulsory
A formal announcement from the Central Board of Direct Taxes stating that individual and corporate taxpayers who pay Rs 50,000 and more as tax in a single payment from April 1 may have to make the payment electronically is expected soon according to this article in the Business Standard.
E-payments of direct taxes are currently optional, though e-filing for companies and certain categories of taxpayers is mandatory, and this move is expected to bring up to 3 million companies and other large tax payers under the purview of mandatory e-payment from the next fiscal year.
Such payments accounted for less than one per cent of net direct tax payments of Rs 2,30,090 crore in 2006-07, and it is expected that mandatory e-payment of taxes will boost the CBDT’s effort to capture data and “mine” it better to check evasion and fraudulent claims. It will also help provide better services to taxpayers to boost direct tax collections, which are currently growing at over 42 per cent.
Hopefully, the increasing number of tax players would result in significant lower tax structures for all.
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