TDS may cover more incomes
The upcoming Budget is expected to bring more income heads in the ambit of tax deducted at source (TDS).
The scope of TDS may be expanded to include more trades and professions. At present, the TDS net covers income from salary, interest on securities, dividend from domestic Companies and prize money from sweepstakes among others.
Budget 2007-08 had brought a few more income heads under TDS, such as award of contracts by individuals for business purposes.
According to government data, tax deduction/ collection at source increased by over 51% until January 15 this year. Meanwhile, the net direct tax collection has continued its 40% growth to be at Rs 2,18,538 crore until January 31.The government is likely to strengthen the administration of TDS as well. Major changes in the TDS system, however, are unlikely.