The Central Board of Direct Taxes (CBDT) is open to suggestions on easing of tax deduction at source (TDS) rates, its Chairman Sushil Chandra has said.

He was addressing the 14th international tax conference, organised by industry body Assocham on Wednesday, where Rahul Garg, Chairman, National Council on Direct Taxes, Assocham, outlined the need for the government to review the current TDS system, both on the rates and coverage front.

Chandra said tax transparency and tax certainty were two key things that guide the principles of taxation for India. In tax transparency, India now has wide range of exchange of information from different countries through Double Taxation Avoidance Agreement, Tax Information Exchange Agreements and Mutual Acceptance Procedure.

“We have agreements with 130 countries and get information from these countries and it is easy to find out what activities are taking place. It is a global hub now from which we get information,” Chandra said.

Exchange of information He also said that the Common Reporting Standards platform had further strengthened the hands of the Indian taxman.

“September onwards, we are going to have more information from different countries on automated platform. We are also getting information from the US under FATCA. Therefore, to say that something will not come to the notice of the country is a thing of the past,” Chandra said.

Nothing can be hidden and taxpayers should not be under the misconception that transactions can be done through certain hidden jurisdictions, he said.

Srivats.kr@thehindu.co.in

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