Vijay C Roy
New Delhi, July 25
The Central Government is working on the modalities to simplify taxes, improve tax payer services and reduce litigation by undertaking a comprehensive review of the Income Tax Act, 1961, which would be shared for stakeholder consultation within next six months.
The initiative will reduce disputes, bring down the demand embroiled in litigation and will be providing tax clarity to the tax payers. The move will be a win-win situation for both the government and tax payers.
“The Central Government is working towards a comprehensive review of the Direct Tax Code, which will be prepared by the internal committee and then shared for stakeholder consultation within next six months. We will have a consultation process and how it will happen that we will decide. We would like to have a collaborative approach for implementation,” Sanjay Malhotra, Revenue Secretary, Ministry of Finance, said while addressing FICCI’s interactive session on Union Budget.
The secretary said the government doesn’t want litigation. “It’s not in favour of, either the government or the taxpayers. So, the government is working in this direction.”
He further said the efforts of the government would continue to provide a hassle free, simple and adopt a collaborative approach towards implementation of taxes. “Our approach towards taxation has always been and will continue to be in the mode of collaboration and not confrontation. The purpose of our proposals, both on the policy side as well as on the implementation side, are to collect taxes from wherever they are due but do it in a manner that gives respect, trust to the taxpayers and collect them in a smooth and hassle-free manner,” he said.
Pursuing this objective, Vivad se Vishwas Scheme, 2024 for resolution of certain income tax disputes pending in appeal has been announced in the Budget. The first ‘Vivad se Vishwas’ scheme for cases under the direct taxes or income tax category was brought out by the government in 2020, with about Rs 75,000 crore revenue being garnered and about a lakh taxpayers availed the scheme.
Malhotra said the whole effort in the budget was how to make the tax process simpler for the taxpayers. On the indirect tax front, abolition of angel tax, decriminalising the laws, reduction in duties were some of the budget proposals benefiting the industry.
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