The government on Friday admitted that fringe benefit tax was 'fast becoming trauma' and indicated revision of the rates under some heads and simplification of the rules for the convenience of taxpayers.
"FBT is fast becoming trauma," Central Board of Direct Taxes chairman M S Darda said in a lighter vein.
Asked whether the government will revise the rates and provisions under various heads of FBT, he said: "We are looking at it."
Government is in the process of making classifications of business expenditures, which could attract FBT and which should be excluded, he said, adding that the rules will also be simplified to make FBT 'painless.'
The government will come out with the specifications either in the budget or notify them separately, he indicated.
Darda also said tax refunds would be sent directly to bank accounts of taxpayers from June 2006.
For big corporates, he said the single window system for collection of excise, corporate tax and income tax may be launched in major metros from April 2006. Large Taxpayers Units (LTUs) were slated to be launched in January.
On revenue mop up, Darda said: "Collection till now is about Rs 96,000 crore (Rs 960 billion). Normally, we expect 60 per cent of the budget estimate to be collected by December. We should have collected over Rs 100,000 crore (Rs 1,000 billion)."
Government had budgeted Rs 175,000 crore (Rs 1,750 billion) from direct taxes, assuming 34 per cent growth this fiscal. "Direct taxes were growing by 24 per cent till now. Personal Income Tax collection is lagging," he said.
Asked if budget target will be met, he said: "We are always hopeful. We still have three more months."
