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CA Sudhir Halakhandi

CA Sudhir HalakhandiWe have been given some of the very important rights by our law makers in recent years such as Right to information, Right to education and the newly introduced  right to food (Recent Food security Bill). These all are recently introduced fundamental right of the citizens of the country. In a democratic country like ours the basic rights of the citizens should always be protected by the Law. Now we need a “right to have simplified Tax Laws”.

Since independence the Number of taxpayers paying the taxes both as Direct Taxes or Indirect Taxes has increased in manifold and their rights should also be protected and further they should also be protected from the continuous harassment in the name of so called simplification of procedures. .

When the era of Economic reforms was introduced in our country, it was promised that the process of simplification of Taxation law will be on top priority of the Lawmakers. I remember at that time it was announced that “we are introducing a Income Tax return From which you will be able to file without help of a Chartered Accountant” and they took nearly six months to introduce that one page return Form and at that time I made a cartoon in a Taxation journal :-

-Why they are taking so much time in introducing the simplified return Form which the assessee will be able to file without help of a chartered Accountant?-Because they are drafting it without help of a CA.

 Now these days, one can clearly say that return Forms are not very simple and in the name of simplification the law makers are not only making the procedure and Forms of filing the returns not only confusing but also complex, sophisticated and time consuming.

You can say the same thing about the TDS returns and the procedure of filing them. Sometimes it gives me a very harsh surprise to know that the TDS returns are required to be filed with the NSDL!!! My question is that when a person can file his ITR from his own “Login” then why he is not allowed to file his TDS return through his own account? The recently introduced penal provisions with respect to TDS returns are very harsh considering the fact that the person covered under TDS laws is doing his thankless duty of collecting and depositing tax without any consideration.

We have been promised GST in 2006 with a time frame of 2010 as it’s applicable date and at present we don’t have  any chance of getting the GST in coming years when our Hon. PM has himself expressed his doubts recently during his visit to Japan and same thing one can say about the DTC. Even the central and state Governments are not agreeing on the “Dual GST” which is only the compromised fractured structure of the Standard format of GST.

See in service tax – The Lawmakers have introduced “Negative List concept” in 2012 and asked the tax payers to use this concept and single code for deposit of tax and filing the return and then one day the same law makers announced that though the concept of Negative list will continue but you have to deposit the tax and file the return with old code Numbers!!!  What is going on!! Trial and error method!! The delay in introducing the Forms for service tax return is also a very mysterious story and the taxpayers are still waiting for the return forms for the second half of the financial year 2012-13. Simplification of law means here to make the things confusing, complex and uncertain!!!

There is a provision in service tax to deposit the tax of Last month / last quarter on 31st March and what is the rationale behind it has not explained to the taxpayers yet!!

Almost all the Vat tax laws are marred with complicated system of E-filing of returns, procedures hazards in getting the refunds, issue of Declaration forms and registration of Dealers etc. Some of the states are very keen to introduce the 100% E-filing system to show how developed they are without proper development of information technology system at their level and the failure of IT system is generally cope with the extension of Dates.

The concept of mandatory penalty in the name of late fees is there in TDS returns, service Tax returns and in VAT returns (in some states) is making the life of taxpayers very hard.

Here there is a need to protect the rights of the taxpayers and we should be provided with a “Right to have simplified taxation laws” in the country.


– CA Sudhir Halakhandi  – CA Abhas Halakhandi

“Halakhandi”, Laxmi Market, Beawar-305901(RAJ)

Cell- 9828067256, E-Mail – sudhir@halakhandi.Com


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  1. Vasu says:

    Rate of TDS in case of Charitable Trusts/AOP/Others needs to be simplified on Interest Income where prior permission is required to be obtained from the Authorities for deduction of Tax at 0, Nil or reduced rate under section 197(1). Lot of difficulties are faced in obtaining such certificates. I feel that TDS on Interest Income be reduced to 2% from present 10% with no refunds & no permission required. This will certainly simplify & save lot of hardships faced by Deductors & other concerned. I am sure with no refunds applicable in view of the reduced rate of TDS will generate in more revenue & will save people of various practical hardships.

  2. VIKAS says:

    A simple question… why only salaried (ALL) persons are bound to pay tax (Actually bound for TDS)… what about shopkeepers / & other businessmen who also gets all government provided amenities i.e. road / securites, etc as the salaries person gets…but pays tax very less or not at all…. even a vegetable vendor (Not all) near my house is earning almost 3 times than me but I have full doubt about his faithfulness for paying income tax….

  3. S.L.Goyal says:

    This seems like a dream which will never be fulfilled – to have simpler tax laws. We are a small company but we have Sales Tax consultants in Delhi, U.P., Haryana and Uttarakhand. We have Service Tax and Excise consultants.Our CA firm advises and handles TDS matters. We have to get CA’s certificate to make a remittance for services imported. At every step you need expert advice. If you try to make calculations, etc on your own thinking that you know enough, you may end up in a mess. The so called experts, many times blackmail and exploit you. We have burnt our fingers many times. It’s sheer luck if you get the right consultant. If only we could have simpler tax laws!

  4. MANDEEP SINGH says:

    It is good article.
    As i think as per author’s article, there is no need of audit reports u/s 44AB & such reports are meaningless & strict hurdle to increase genuine tax base.
    Govt. & CBDT give intention to delete provisions u/s 44AB. so for assessee can file his return WITHOUT THE HELP OF CHARTERED ACCOUNTS.

    It will be a great move to increase revenue of govt.

  5. SHABBIR says:

    For Simplification, ASK (Aaykar Sampark Kendra) has been set up at important places. As also, TRPs have been notified for preparing returns for the citizens either online or paper form. It is the duty of the citizen to go to the Income Tax Department offices and find out the convenient way of filing. TDS return filing is made complex because of its misuse by anyone. So, its remains the works of CA or tax expert who can help citizens in filing TDS returns. As also, due to difficult political scenario, it is not possible to introduce GST, DTC as early as possible. Hope, you now understand the situations..

  6. dattatreyahg says:

    This fresh thinking is good.A 26 page IT Return form itself is a nightmare for any small taxpayer. Some research is required to know (a)How much tax collection has increased from the days of ONE PAGE SARAL FORM to present-day 26 page form? (b)what Has been the increase( or decrease) in tax collection after taking into account the increasesd cost of collection?.[ pl take into account the cost of increase in establishment expenses,cost of effort & time of taxpayer in just filling up the Return,Cost of paper& paperwork].It is better to do this fast and effect REFORMS, than to procrastinate and invite an unanswerable observation from CAG later. REFORM does not mean only increasing prices.Increasing effectiveness of administration with least cost is the kind of REFORM that is needed. That requires out-of-the-box thinking of a statesman, as against the routine thinking of a junior accountant of a petty- shop

  7. ram babu B.Com says:

    * Frankly speaking I did not go through the entire article. But I wish to state that any suggestion should be such that it should not involve the Govt. Depts.

    @ How many of the staff can clarify whenever you approach them with some small doubt while filling up the form. ( i experienced humiliation from the Dept. when ITR 4 was introduced – ie. I do not know how to fill the interest on housing loan. (with a professional’s mercy I could know how to fill up this claim)

    $ My clients have been receiving notices for short dedn of TDS. The fact is that there is only 1 challan the details of the same are entered incorrectly. Now i do not find any one who can guide me..(in the dept.)

    i received a mail on behalf of the client whose return is filed electronically – saying that that the file is transferred to concerned jurisdictional officer.)
    The jurisdictional officer ……..(when we have to get some refund)
    With this kind of administration !!! reforms 1 can expect

    *** Though this may be out of context in the present day situtation individu-ality (invidual ability) is defined as one who converts oneself according to the needs of the opposite person / situation rather than going by the rule book / ethics etc.etc. Tax payers are used to such abilities and get the things done)
    The department is also treats such assessees / consultants as the people who know ETIQUETEE.

  8. Vikram says:

    Partially i disagree with writers in many matters, if the law is made so simple then Chartered Accountnt & Advocate will not be required.Law is not based on theoretical thinking it is based on practical issues faced by department and assessee. Given below are the matters i disagree:

    1. As far as TDS is concerend Penalty is required for those person who are not filing or filing incorrect particulars. person who files the return properly has no issue with it.

    2.person who studied law of service tax has no issue with the forms and procedure .

    3. Every where we have to just start to achieve goals, so vat (state govt.) has done something better than earlier.

  9. S PRAKASH says:

    The “We Should Be Given Right to Have Simplified Taxation Laws” it is goods and order of the day, but “Why they are taking so much time in introducing the simplified return Form which the assessee will be able to file without help of a chartered Accountant?-Because they are drafting it without help of a CA”. is not correct.With out the CA many thnings can happen and even the drafting of the DTC and more.The CA is not ultimate of for Income Tax Law.One can not understand why CA’s are behind the Income Tax Act?They have got still better things to do for the nation.Audit in strict sence and development of the confidence of the Government that they can do better audit than the CAG.In fact the CBDT has to be represented by the persons from all catogories and not only by the IRS.The policy and law should be separted from implementation and administration then only 2% IT payers may be increaed to 20% at least and not depending on the CA’s.If the accounts and audit are made simpler the taxation becomes simpler. If this simple rule is understood by the CA’s I think all the income tax problems are solved.

  10. S C Kapur says:

    The issue is addressed to whom ? And who is listening the difficulties of Tax payers. Our Tax Laws are getting complicated day by day.

  11. SANJEEV says:

    Thanks sir, for such a thinking. But sir it is india , here the lawmakers are made to get high salaries out of out taxes. they are not here for serving us , they are here for ruling us… what a drama is going on…. wow….But thanks to you all & I think the same. I am seeing that very soon our thought holding people will come out of their sweet homes & tell these lawmakers that , don’t make law but tell us how you reconcile our taxes at their end. so that we will be satisfies that our money is doing development of country not their pocket.

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July 2024