Guwahati: An awareness program has been recently conducted at Chandmari focusing on the provisions of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) backed by the Central Board of Direct Taxes (CBDT), New Delhi. The event aimed to increase outreach and highlight crucial tax compliance aspects for businesses and individuals in the region.
In the event, Business North East (BNE) engaged in an insightful conversation with T J Singson, Commissioner of Income Tax (TDS), North Eastern Region (NER), to discuss key tax administration developments, digitalisation, and measures to enhance compliance while easing the tax burden on businesses.
When asked about how the shift towards digitalisation has transformed tax administration and compliance in recent years, T J Singson responded by saying, “Digitalization has significantly reduced manual effort and saved time while ensuring authenticity and accuracy in tax-related processes.” The move towards digital platforms has also enhanced transparency, minimised errors, and facilitated seamless compliance for taxpayers.
Regarding tax relief for startups and MSMEs, T J Singson said tax policies are formulated at a higher level. However, he pointed out that tax holidays and exemptions are available for eligible startups, and such incentives remain accessible in the public domain. The Income Tax Department continues supporting businesses by ensuring clarity in tax compliance.
When asked about efforts to simplify tax laws and enhance the ease of doing business, Singson assured that the department is actively analysing and addressing any existing complexities. “At the highest level, continuous efforts are being made to refine tax structures and payment mechanisms to make compliance more business-friendly,” he noted.
Ensuring a fair tax system without harassment of genuine taxpayers remains a priority for the Income Tax Department. Singson highlighted challenges specific to the Northeast region, particularly regarding TDS exemptions under Section 10(26) of the Income Tax Act, which grants tax relief to tribals in certain areas. However, he pointed out concerns regarding fraudulent exemption claims, where individuals misuse exemption certificates under Section 197.
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“There have been instances where individuals, not just tribals, have claimed wrongful deductions and obtained tax refunds fraudulently. This is a serious concern,” Singson stated. He emphasised that the department is addressing these issues by conducting extensive outreach and awareness programs to educate taxpayers and prevent misuse of tax provisions.
The Income Tax Department’s initiatives in the Northeast aim to balance compliance enforcement with taxpayer convenience. The department remains committed to digital transformation, supporting businesses, and ensuring tax laws serve their intended purpose without undue burden on honest taxpayers.
Through awareness programs like the recent TDS and TCS session, the department seeks to bridge knowledge gaps and promote transparency, ensuring businesses and individuals comply effectively with tax laws.
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