Overview_of_the_Indian_Income_Tax_System-5 feb

8/7/2019 Overview_of_the_Indian_Income_Tax_System-5 feb

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A presentation for the WMP batches of

IIM Lucknow at NOIDA Campus

February 2011by Sunil Bajpai


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` Why Income Tax

` Some Myths

` The Stakeholders

` The Organisation` The Law

` The Process

` Some Concerns

` Dos &Donts


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` Tax is the cost we pay for civilization

` We need a govt. and the govt. needs to spend

` Majorincome of the govt. comes from tax revenue

` Income tax is the best way to tax


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` Indians are over taxed REALITY

` Indian tax rates are too high REALITY

` Income tax procedure could have been much

simpler REALITY` Cost of collecting income tax is too much

REALITY


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The Government` Revenue` PolicyTax payers` Compliance

` ServiceIncome Tax Department` Enforcement` Budget Targets` Tax payer serviceTax deducters

Information ProvidersThe Common Man


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` The CBDT

` The Directorates

` Assessment wing

` Investigation wing` TDS setup


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` Administration

` PR, Printing &

Publications

` IT & Audit` Recovery

` Systems

` Organization &

Management Services

` Infrastructure

` BPR

` Legal & Research

` Vigilance` HRD

` Exemption

` International Tax

` Transfer pricing

` TDS


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` Chief Commissioner

` Commissioner/ Commissioner (appeals)

` Addl. Commissioner

` Asstt./Dy. Commissioner` ITOs

` TRO


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` Director General

` Director

` Addl. Director

` Asstt./ Dy. Director` ITOs


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` Indian Income Tax Act 1961

` Income Tax Rules

` Wealth Tax Act

` Accounting Standards` Judicial pronouncements- Tribunal, HC, SC

` Other regulations- Company law, Hindu law, TP

Act etc.


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` Deals with the bottom-line

` Variety of Assessees

` Variety of Businesses

` Necessity to take care of all possiblecontingencies

` Complex accounting systems

` Frequent changes

` Exemptions- tool for policy implementation` Dynamic legal system


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` Poor compliance

` Narrow tax base

` Hole in the net

` Mistrust` Tax evasion is ok mindset

` Under-developed/ archaic systems

` Mounting litigation


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Dos

` Obtain PAN

` Quote correct PAN

` Understand your basic obligations` Check 26AS

` Route major transactions through Bank

` Declare income from all sources

` Keep records` Respond to notices


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Donts

` No need to be scared

` Ignorance may not be bliss

` Dont accept a tax planning advice withoutchecking with a consultant


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THANK YOU

Queries: [email protected]


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` theInternal Revenue Code runs morethan 3million words, and theinstructions forthe

widely used 1040 form take up morethan 100

pages.

` three out of fivetax filers pay someonetopreparetheirreturns, and anotherone in five

uses software.

Source:http://www.taxpolicycenter.org/publications/url.cfm?ID=901335


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Cost of Collection of Direct Taxes


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Overview_of_the_Indian_Income_Tax_System-5 feb