​​​
  1. On direct tax overhaul, Modi government not in favour of ‘sweeping’ changes: Report

On direct tax overhaul, Modi government not in favour of ‘sweeping’ changes: Report

Nearly eight months after a task-force was formed for a complete overhaul of the 50-year-old Income Tax Law, the Narendra Modi government does not seem keen on 'sweeping' changes.

By: | Updated: July 13, 2018 1:42 PM
On direct tax overhaul, Modi government not in favour of 'sweeping' changes: Report The government is not in favour of bringing any ‘sweeping’ changes in the Income Tax Law

Nearly eight months after forming a task-force for a complete overhaul of the 50-year-old Income Tax Law, the Narendra Modi government does not seem keen on ‘sweeping’ changes. CNBC-TV18 quoting sources reported that the government is not in favour of bringing any ‘sweeping’ changes and the revenue department does not have scope for major changes anymore at this point.

Some of the changes that were required to make tax filing easier and increase compliance have already kicked-in and the re-drafting of the Income Tax Law would be about accommodating amendments that have already been made, the news channel reported.  The task-force, rewriting the income tax laws, was granted an additional six months time until August to submit its report.

While Income Tax Law overhaul has been a long-pending agenda, arguably recognised during the UPA-II, a lot of changes and amendments kept coming in to increase compliance by making processes easier, most recent being the increase in the threshold for litigations by the tax department with an aim to cut its number by 41%. The Economic Survey 2018 had pointed out that the tax department was the biggest litigator — with little success — burdening the Indian judiciary.

In 2016, the time to comply with corporate income tax almost halved after a number of reforms such as Income Computation and Disclosure Standards (ICDS) was introduced, a joint report by the World Bank and PwC said. Data gathering has also become increasingly automated due to the use of modern enterprise resource planning (ERP) software.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Go to Top