Monday, February 21, 2005

Tax Reform

State of California is implementing a new system where the residents will get pre-filled tax returns. They just need to sign it and return it.
I guess India should replace the Saral form with something similar. This will benefit a large section of Indian taxpayers as most of the 25 Mn taxpayers are in service jobs. In their case it is the employers obligation to scrutinise various documents. Hence even with plethora of deductions available to an Indian Tax Payer, there are no road blocks.With TIN coming in place, already companies are filling their tax challans online. Not only that, but tax payers can also file their return online starting this year. This will be a logical extension to the existing system, and I bet is going to be a huge success.
Actually a better system will be to extend the Online Return Filing to Ordinary Tax Payers and to do away completely with the intermediary involved right now.
Believe me or not, an average Indian is intimidated by the complex thing called Personal Income Tax. More than that they are intimidated by the officials of IT Deptt. Filing a return in the queue and computation of taxes is a big drain on time and I am sure causes a lot of hardships. Computerisation offers salvation to the poor service being offered to the denizens of this country.
DO IT. DO IT. DO IT.

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