The Hindu : Business : FBT rules may be simplified

Online edition of India's National Newspaper
Saturday, Dec 24, 2005

Business

Business

FBT rules may be simplified

Govt. in the process of classifying expenditures

Single window for system collection of taxes Large tax payers units from January

NEW DELHI: The Central Government on Friday admitted that the Fringe Benefit Tax (FBT) was "fast becoming trauma'' and indicated revision of the rates under some heads and simplification of the rules for the convenience of taxpayers.

"FBT is fast becoming trauma,'' Central Board of Direct Taxes Chairman M. S. Darda said in a lighter vein.

Asked whether the Government will revise the rates and provisions under various heads of FBT, he said: ``We are looking at it.'' The Government was in the process of making classifications of business expenditures, which could attract FBT and which should be excluded, he said, adding that the rules would be simplified to make FBT ``painless.''

The Government would come out with the specifications either in the budget or notify them separately, he indicated.

Mr. Darda said tax refunds would be sent directly to bank accounts of taxpayers from June 2006.

For big corporates, he said the single window system for collection of excise, corporate tax and income-tax might be launched in major metros from April 2006. Large taxpayers units (LTUs) were slated to be launched in January.

On revenue mop up, Mr. Darda said: ``Collections till now are about Rs. 96,000 crore.

Normally, we expect 60 per cent of the budget estimate to be collected by December. We should have collected over Rs. 1,00,000 crore.'' — PTI

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