Clarification on high tax expected soon
The government is examining the issue of foreign portfolio investors (FPIs) coming under the purview of increased surcharge on high-income earners, CBDT (Central Board of Direct Taxes) chairman, P.C. Mody has assured investors.
“The matter is under examination and very soon we are going to come out with a clarification on that,” said Mody at a Post-Budget Conference organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) in New Delhi on 8 July 2019.
Stating that the matter was brought to his notice just today morning, the CBDT chief added, “It is too early, too premature to say anything on the subject at the given moment, let the matter be examined.”
He also informed that this year both number and quantum of refunds has been 20% more than the last year up to this point of time.
“Just as the way we believe in revenue mobilisation but at the same time, we are equally conscious of refunding back the amount, which is due to the taxpayer, in all this we are using technology in a big way.”
He further said that even in terms of assessment, the department is using and proposes to use newer methods and technological interfaces so as to make the process much simpler and to reduce the pain points.
“We are working on a detailed scheme and I am sure it will see the light of the day very soon,” said Mody.
On Prime Minister Narendra Modi’s statement on ease of living, he said that ease of tax compliance would be an integral part of ease of living concept which relates to both policy and processes.
Talking about Union Budget 2019-20, he said that lot of attempt has been made to use technology in matters of compliance and that of the department to provide better services to taxpayers.
Akhilesh Ranjan, Member-Legislation, Central Board of Direct Taxes (CBDT) said, CBDT will submit the report of Task Force on simplification Direct taxes before 31 July. “We will come out with our view in tax structure.”
Ranjan, further said that we are concentrating on minimum government and maximum governance, the intent to create a situation where the inherent energy and creativity of industrial businesses can come out.
Creating an environment where enterprise can grow and funds can move because all those required the basic infrastructure and ‘Intent is come out extremely well’, said Ranjan.
“The start-up sector has been a priority area for number of issues, we have resolved number of areas like angel tax, verification of shed investments in shares.
“We are now on the path of using technology in a major way to assist in verification and to make the process painless as possible.”
The idea is to make things absolutely easy for the taxpayers to comply and remove the pain points which are mainly associated at present scrutiny process and develop social contract.
“We are not now living at the age of taxpayers’ verses tax department. It is combined effort and has to be corporate effort something that both of us have to work to bring goal of higher tax revenues which can enable better development.
Develop trust and cooperation between the taxpayers and tax department. The threshold rate of return is good enough for massive investment, he said. fiinews.com