“The objective of the Budget provisions on taxation is to clarify the concerns of industry once and for all, so that litigation is minimized. The proposals on Dispute Resolution Committee, Board for Advance Ruling and Faceless Income Tax Appellate Tribunal together weave a common pattern of resolving disputes in a transparent, effective and efficient manner. This goes one step further in the direction of implementation of the Vivad se Vishwas Scheme, which has been a huge success” said Mr Pramod Chandra Mody, Chairman, Central Board of Direct Taxes, Ministry of Finance. Mr Mody was addressing the industry at the Union Budget 2021-22: Interactive Session with Ministry of Finance, organized by Confederation of Indian Industry (CII).
Mr Mody further elaborated that the idea behind the provisions relating to depreciation on goodwill and Equalisation levy has been to bring in tax certainty, both for the taxpayers and the Government. The changes proposed in the provisions relating to TDS and reopening of tax cases would lead to a stable and consistent tax regime, and an enabling environment which would motivate voluntary compliance among taxpayers and widen the tax base. The Government is determined to create a better taxation system in the country with the help of data analytics and technological advancements.
Mr Rajiv Memani, Chairman, CII National Committee on Taxation lauded the Government for a balanced and visionary budget, with clear focus on future growth and incentivising investments. He further complimented the Government for maintaining tax rates stability despite revenue constraints; and instead focusing on improving ease of doing business through simplification and putting in place new mechanisms to address the deep-rooted problem of tax disputes. He urged that the inadvertent impact of disallowance of goodwill on depreciation should be reviewed. Further, the scope of Dispute Resolution Committee should be expanded to mid-sized taxpayers also. He also called for an early resolution of residency issues arising due to pandemic for FY21 for individuals stranded in India.
5 February 2021