Either directly or indirectly tax will be an inevitable matter for income and expenses in countries with Government. It is a concept directly connected to welfare nation. Everyone cannot be forced to pay tax for Income even though tax on expenses is mandatory. Because tax is levied for the welfare of the people and there is no meaning of collecting it from everyone when the same persons are struggling to meet their expenses other than daily bread. To bypass tax evasion and tax avoidance various departments from time to time adopt new strategies to attract more tax from the public. But, lack of systematic approach bring the entire system into trouble.

Tax Deducted at Source seems to be adopted for ease of fund mobilization of individuals and Government. A lot of persons got it’s advantage since a lump sum amount was not required to source for the payment of tax. But there is a fraction of people who took advantage of the system which demands TDS. Bringing an example which is a case about the TDS on Professional Fees and charges which were misrepresented against Contract. So, someone who are enrolled in the company records as partnered professionals in the individual capacity holding systematic knowledge, passing the criteria for eligibility and following the professional code of conduct fell down into the title of a contractor. Hence the person who is a professional as per company records get projected under the category of Contractor in IT records. Whether it is a professional or contractor there would be the liability to pay TDS; though the amount will be different.

And the person’s ‘liability to pay more’ or ‘eligibility for refund’ will be determined only at the time of finding Total Income. Finally, the persons who get refund will appear to be happy. Unfortunately there are a lot of people who do not have the clear knowledge about the payment of Income Tax. It is really heart breaking for such people whose entire income is based on commissions like commission from sale of Insurance policies, lottery tickets, etc. Earlier they have to pay more TDS. And they do not go for tax filing or refund when they were eligible to claim back more than INR 10,000. Yet some of the same persons who sacrificed the whole eligible amount of refund earlier have tried to file their returns and demanded the tiny portion due to unforeseen financial situations from the times of pandemic. The harsh reality is avoidance of double tax for a person earning 1lakh per year when he spent the entire income for household expenses; the majority of which attracts an Indirect Tax of 18%.