Filing IT returns in India much simpler than US, Nilesh Shah says after jump in ‘Ease of Doing Business’ rank

By: | Published: November 9, 2018 12:08 PM

After India’s made rapid progress in the World Bank’s ‘Ease of Doing Business’ rankings, fund manager Nilesh Shah noted that filing income tax returns in India is much simpler than filing in the United States.

“Try to file income tax return in the US and you will realize filing income tax return in India is much simpler,” Nilesh Shah said.

After India’s made rapid progress in the World Bank’s ‘Ease of Doing Business’ rankings, indicated by a 53 spot jump in just two years, fund manager Nilesh Shah noted that filing income tax returns in India is much simpler than filing in the United States. In an interview to CNBC TV18, Nilesh Shah said, “We keep talking about having this hurdle, and that hurdle in India, but go and try to file income tax return in the US and you will realize filing income tax return in India is much simpler.” He was responding to a question on the various regulatory hurdles in India, despite a massive jump in ease of doing business ranking improvement.   

According to Nilesh Shah, given some of the powerful forces in financial services, such as disintermediation, digitization, differential regulation, and the overall formalization of the economy, savings and financialization of assets, household borrowings were low indicating a huge opportunity for the whole NBFC-housing finance companies space. “With the added liquidity advantage, particularly post demonetization, they have grown much faster,” he noted.

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After being an underdog for years, India finally showed a huge progress on the World Bank’s Ease of Doing Business ranking by jumping 53 ranks in the last two years. Yet, the dream to enter the ‘top 50’ club remained incomplete. After breaking into top 100 leapfrogging 30 ranks last year, India took a giant leap of 23 ranks this year to secure 77th rank on back many reforms.

However, Finance Minister Arun Jaitley said that there were many areas where the country needed significant improvement if it wished to continue with the success streak and make it to top 50 by next year. Jaitley said that India can crack into top 50 if it improves on parameters such as time taken for registering real estate, starting business and enforcement of contracts.

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