Industry body Assocham has pitched for a single TDS rate of 1 per cent or 2 per cent for all payments made to resident assesses to avoid litigation on interpretational issues and ensure ease of tax compliance.In a pre-Budget memorandum to the finance ministry, the industry chamber also made a case for decriminalisation of certain TDS (Tax Deducted at Source) defaults.Criminal proceedings should apply only when the taxpayer has enriched himself at the expense of the government, and not to cases where certain payments / benefits are made or provided without applying TDS, said Assocham President Sanjay Nayar."We expect tax reforms aimed at reducing litigation, easy and better compliance to be part of the Union Budget for 2025-26. Corporate India is giving some constructive recommendations in this regard. India Inc is also looking for measures which would boost both investment and consumption," he added. The chamber further stressed that tax neutrality should also be provided for amalgamation and demergers.Currently, this is allowed only for companies and tax neutral merger and demerger and not for slump exchange. Besides, tax neutrality should be provided to Indian resident shareholders of foreign amalgamating and demerged entities, it said.

Assocham asks govt to consider 1% TDS rate

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{{magzter}} is the World's largest and fastest growing self-service, cross-platform digital newsstand with over 87 million users since its inception in 2011 and thousands of magazines and newspapers across 40+ categories and 60+ languages. Headquartered in New York, Magzter has its local presence in Amsterdam, London, Mexico City, Chennai, Mumbai, New Delhi, Bengaluru, Singapore, and will soon be expanding to other countries. Founded by global entrepreneurs, Girish Ramdas and Vijay Radhakrishnan in June 2011, Magzter enables magazine and newspaper publishers around the world to create and deliver digital editions of their titles to global consumers.