Business Mantra: Faridabad
WILL FM ACCEPT IN BUDGET?
*RECOMMENDATIONS OF TAX SIMPLIFICATION COMMITTEE*
Modi government has indicated for bringing rationalizations in tax structure for effectively implementing their “EASE OF DOING BUSINESS” agenda.
There have been many sections/provisions/phrases of the Income Tax Act, which give rise to unnecessary litigations or we can say amending them is necessary for simplification of the Act to bring ease of doing business.
So, to study and identify all such sections/provisions/phrases, Central government of India constituted a 10 member committee headed by former judge of Delhi High Court and former President of ITAT, Justice R.V.Easwer.
Committee is its 1st report has recommended 27 amendments or deletion of few sections in Part I and 8 recommendations under Part II(Reforms through administrative instructions)
Few recommendations are of concern for small businessmen like increasing the limit of presumptive scheme for small businesses from 1Crore to 2 Crores and at the same time to introduce presumptive scheme for professionals also.
Presently under Section 56 if a property is sold at a price lower than the value at which the stamp duty has been charged, then capital gain is payable @ value at which the stamp duty is charged. We all know that at many locations, value taken by the revenue authorities for stamp duty is same for a particular area and the actual price of the property varies a lot based on the location and situation of the property. So it was very difficult for the seller, whose property was sold at a lower price than the stamp duty valuation. Now the tax simplification committee has recommended to delete this section.
Complete list of recommendations of the committee, may be viewed/downloaded from the weblink taxsimplification.in
According to taxation practitioners including CAs, Lawyers and businessmen, this step of Central Government of India and timely action of tax simplification committee is very good and is welcomed by one and all.
Now, everyone is expecting that Finance Minister, Mr. Arun Jaietly, will accept all or most of these recommendations in his budget speech and if Finance Minister does not show a similar approach then all the work done in this direction will go in vain, but chances for accepting the recommendations are very high as “Ease of Doing Business” is very favourite concern of our Prime Minister Sh. Narendra Modi.
*In our next articles we will discuss few of these recommendations in detail.