ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Import Policy Fails to Click

and lowering of the deduction rate to 10 per cent would by and large take the bite out of the measure. On the other hand, interest receipts by companies would be subject to deduction at the only slightly reduced rate of 20 per cent. Since collection of taxes and identification of income is certainly easier in the hands of the corporate sector than in the hands of individuals, the more liberal treatment envisaged now for individuals clearly goes against the original intention of this measure. Further, the corporate sector pays its income-tax almost in step with the accrual of income. The net usefulness of advance deduction of tax for revenue also will thus be minimal and the measure could have been withdrawn altogether with grace.

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