The news item appearing in your esteemed paper under the heading "Service sector grossly under-taxed" makes interesting reading. I was particularly impressed by the statement of Chairman CBR that 54% of tax recoveries is by deduction of with-holding tax at the source.

I would, however, like to draw the attention of the Chairman CBR to the extreme difficulties the assessees have to go through to collect copies of challans from the deducting agencies.

The person, who deducts withholding tax, does not take the trouble to provide copies of challan to the assessee and every July and August, the assessees have to waste a lot of their time and go through a lot of harassment in collecting challans from the deducting agencies.

I suggest that necessary provision be made in the law and/or Income Tax Rules to make it a legal obligation of anyone making a deduction of withholding tax to give to the payees/assesees either the prescribed certificate of deduction or copy of challan along with the cheque when making payment.

This would be a great service to the tax payers and save them a lot of time spent in July and August every year in trying to collect copies of challan in order to claim credit in their tax returns.

Copyright Business Recorder, 2004