Ease of tax compliance will be an integral part of Prime Minister Narendra Modi’s ‘Ease of Living’ statement that has been envisioned in the budget, says Central Board of Direct Taxes (CBDT) chairman P.C.Mody. Mody was speaking at a post-budget conference, organised for business and trade by the Associated Chamber of Commerce and Industry (Assocham) in the national capital on Monday.
Mody also pointed out that this year, both number and quantum of refunds has been 20 per cent 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 even in terms of assessment, the department is already using and proposes to use newer methods and technological interfaces so as to make the process much simpler and to reduce the pain points. “A lot of attempt has been made to use technology in matters of compliance (so that the tax dept could) provide better service to taxpayers,” he said.
CBDT is to submit the report of the task force on simplification of direct taxes by the end of this month.
The CBDT chairman also said the government is reexamining the issue of foreign portfolio investors (FPIs) coming under the purview of increased surcharge on high-income earners. “The matter is under examination and very soon we are going to come out with a clarification on that,” he assured.
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Stating that the matter was brought to his notice only on Monday 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.”
Akhilesh Ranjan, member, CBDT, also pointed out how government’s budget vision was to concentrate on certain broad high growth areas where “tremendous potential was waiting to be released”. He specifically pointed to the accent on housing as well as startups in the budget. “The incentives on housing and reductions are increased from Rs. 2 lakh to Rs. 3.5 lakh is a major incentives for purchase of houses. Such incentives will create ripple effects; it will create demand and investments return,” he said.
Calling startup sector a high priority area, he pointed out how various issues like angel tax, verification of shed investments in shares etc. have been resolved. “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,” he added. The idea is to make things absolutely easy for the tax payers to comply and remove the pain points which are mainly associated at present with scrutiny process and develop social contract.
“We are not now living at the age of tax payers verses tax department. It is a combined effort that both have to work to achieve the 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,” Ranjan signed off.
