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Posted on April 24, 2021
- A new Direct Tax Code (DTC) drafting made with the assistance of Talented committee by Modi’s Team.
- Ages-ago the Income Tax Act, 1961 were formed and this is now replaced by DTC.
It is always experience that matters a lot in the direct tax code. With the ages of work experience tax experts are expecting a report generating task force that ease the compliance burden and the ligations that is patterned for the future through consolidation of new draft of law and orders fetched from multiple high courts and the supreme courts in the settlement issues.
Amrish shah, who is the partner of Deloitte India gave an open statement as
“Broadly, easing the tax and compliance burden, bringing in simplification and certainty in tax provisions and compliances, and introducing provisions facilitating merger and acquisition (M&A) activity and other restructuring will be the major asks from corporate”.
The tax and its compliance burden are made easier by passing a simplified, tax provision and compliance. The introducing provisions facilitate the merger and acquisition activity along with other major tasks in corporate restructuring.
The expectation on the new DTC enables tax administration technology via modern law in accordance with the present scenario. Furthermore continued Mr. Rahul Garg, who stands as a Senior Partner (Tax & Regulatory), PwC India as the tax governance will be made even more efficient and effective shortly.
As the title states that Prime Minister Modi’s ruling since last time has given a limelight idea on the Expert committee set-up drafting a new Direct Tax Code (DTC) in the place of age old Income Tax Act, 1961. The committee’s ToR (Term of Reference) and constitution is differed from the earlier. Thus, the end date for the report submission is extended and thrice it has happened till now. The members of task force are as follows.
Akilesh Rajan, who is a Central Board of Direct Taxes (CBDT)member where the CBDT is the top policy-making department in the Tax Department. This member is appointed as the head of the Task Force.
Girish Ahuja (chartered accountant),
Rajiv Memani (chairman and regional managing partner of EY India),
Mukesh Patel (Practicing Tax Advocate),
Mansi Kedia (Consultant, ICRIER) and
G.C. Srivastava (retired IRS and Advocate).
The Key Result Areas of Tax Department shows the taxpayer’s base is increased and the panel of experts expect suggestions for the simplification of the annual filing process for the Income tax returns (ITR’s). This is in major focused on the salaried taxpayers.
Riaz Thingna, director, Grant Thornton Advisory Pvt Ltd said “The biggest thing one can expect that the settled positions which have come through courts are incorporated so that there are fewer litigation in the future,”
Riaz Thingna uttered with a happy note that the incorporation of settled property through court verdict might have only very few litigation when checked for, in the future. Also, Big-4 consultancies tax associate Advisor has intimated that all court orders are incorporated in the new draft law. As, “It will only include those where the Tax Department has got favourable orders,”.
In the mean time the Task Force report will come in to act while the Indian economy shows a fall score with most macro indicators are slowdown. There are multiple automobile divisions and real estate sectors, are at worst situation that is facing severe crisis in recent years and are in demand of relief systems as day passes.