Actually what is required is not a new tax law, but simplification of procedures, reduction of paperwork (or online work), and the representation of the liability of tax officials
Recently, while addressing the Prime Minister, Income Tax Commissioner's council, it has been stated that the old income tax structure needs to be changed, as the existing tax laws are more than 50 years old and are not suitable. With today's environment and current economic situation.
One report reads that tax officials are starting the work to draft new income tax laws based on these comments. There is a fluttering question: Do we really need a new income-tax law?
To understand this, we first need to understand the tax laws' deficiencies (both alleged and actual). One observation is that tax authorities can not catch tax evaders. Under the current system, it has been said that when people were just seized after showing off under a splinter or when the assets were seized or when the shell companies were found. About 90% of the resources are used for assessment assessment, which is only 9% of the tax collection. This happens when 90% of the collections come from advanced tax, while huge resources are spent to collect the balance.
Do these deficiencies show a problem in tax laws, or tax procedures and tax administration problems? This tax department has clearly administrative failures, perhaps partly due to the current tax system. Therefore, there is a need to provide facilities to tax officials in the form of clear and accurate information flow, good management and good action,But the need of tax officials to take responsibility is to get them pulled out. Even if they can not deliver results with such improved tools. In fact, the Prime Minister points out many aspects of the need to improve tax administration in the same speech. Unfortunately, no one listens to the measures taken to deal with these problems, with the same enthusiasm as shown in an attempt to create a new law.
The past experience with the Direct Tax Code shows that the new tax law is generally prepared with the attitude of overthrowing all past court decisions, which has put issues in favor of taxpayers. In fact, our tax law is proficient in the annual reforms made just for this purpose. For the small fraction of the taxpayers, all taxpayers are forced to suffer from rigid provisions, which taxpayers have to pay tax on more income than their actual income, which is due to various revenues.
On the one hand it is claimed that the rate of tax has been reduced, but on the other hand a provision is seen in which the taxpayer ends paying tax on more than his direct income. Thus, the effective tax on real income is the same or the lower.
In addition, in recent years, one has noted that the committees have suggested to make law bills or to modify the instructions, there are only tax department officials. Definitely, therefore, the final result is a draft based on the assumptions of tax officials only, and the tax collectors only have to face problems regardless of the difficulties faced by the taxpayers and the realities of the land.
If a balanced committee is set up, some have been implemented in the proposed move. At the end of the last year, the judges' review committee will be presented before the central budget in its final report. The report is not yet public, however the budget comes and runs. One understands that many including the retired High Court's Judge, Taxation Professionals and Tax Officers have made many suggestions to reduce the problems of committee taxpayers, which are not applicable and therefore the report is still under cover Is there Hence, one speculates that the taxpayer's intention is to impose a new tax law and be unlawful.
Another important fact is that the effect of many significant changes in various laws during the last 3-4 years has been affecting businesses. We have seen a new company act in which those parts are periodically notified and are periodically notified: pollution and its fall;New Accounting Standards (IND-AS); New Critical Goods and Services Tax (the complete complications that will take place in the near future); Various changes to income laws and compliance - such as limits on interest approval, income calculation and disclosure norms; And more In most parts of the time and effort of businesses and professionals (especially the small and the middle ones), the law is struggling to face many of these critical changes, which have clearly focused on the business or business of their business.
A new tax law will increase this contrast, destroying business confidence. Experience has also shown that it will increase tax liability, the fact that the new law's plan and language will be quite different, will ensure the persistent legal issues. Where is the ease of doing business?
Actually what is required is not a new tax law, but simplification of procedures, reducing paper paper (or online work, current status) and presentation of the responsibility of tax officials. These rules can only be achieved by change, although they have a desire to do so. One is hoping that taxpayers do not end up suffering to increase the enthusiasm in the new law, they have to face the new tax laws attack.
Recently, while addressing the Prime Minister, Income Tax Commissioner's council, it has been stated that the old income tax structure needs to be changed, as the existing tax laws are more than 50 years old and are not suitable. With today's environment and current economic situation.
One report reads that tax officials are starting the work to draft new income tax laws based on these comments. There is a fluttering question: Do we really need a new income-tax law?
To understand this, we first need to understand the tax laws' deficiencies (both alleged and actual). One observation is that tax authorities can not catch tax evaders. Under the current system, it has been said that when people were just seized after showing off under a splinter or when the assets were seized or when the shell companies were found. About 90% of the resources are used for assessment assessment, which is only 9% of the tax collection. This happens when 90% of the collections come from advanced tax, while huge resources are spent to collect the balance.
Do these deficiencies show a problem in tax laws, or tax procedures and tax administration problems? This tax department has clearly administrative failures, perhaps partly due to the current tax system. Therefore, there is a need to provide facilities to tax officials in the form of clear and accurate information flow, good management and good action,But the need of tax officials to take responsibility is to get them pulled out. Even if they can not deliver results with such improved tools. In fact, the Prime Minister points out many aspects of the need to improve tax administration in the same speech. Unfortunately, no one listens to the measures taken to deal with these problems, with the same enthusiasm as shown in an attempt to create a new law.
The past experience with the Direct Tax Code shows that the new tax law is generally prepared with the attitude of overthrowing all past court decisions, which has put issues in favor of taxpayers. In fact, our tax law is proficient in the annual reforms made just for this purpose. For the small fraction of the taxpayers, all taxpayers are forced to suffer from rigid provisions, which taxpayers have to pay tax on more income than their actual income, which is due to various revenues.
On the one hand it is claimed that the rate of tax has been reduced, but on the other hand a provision is seen in which the taxpayer ends paying tax on more than his direct income. Thus, the effective tax on real income is the same or the lower.
In addition, in recent years, one has noted that the committees have suggested to make law bills or to modify the instructions, there are only tax department officials. Definitely, therefore, the final result is a draft based on the assumptions of tax officials only, and the tax collectors only have to face problems regardless of the difficulties faced by the taxpayers and the realities of the land.
If a balanced committee is set up, some have been implemented in the proposed move. At the end of the last year, the judges' review committee will be presented before the central budget in its final report. The report is not yet public, however the budget comes and runs. One understands that many including the retired High Court's Judge, Taxation Professionals and Tax Officers have made many suggestions to reduce the problems of committee taxpayers, which are not applicable and therefore the report is still under cover Is there Hence, one speculates that the taxpayer's intention is to impose a new tax law and be unlawful.
Another important fact is that the effect of many significant changes in various laws during the last 3-4 years has been affecting businesses. We have seen a new company act in which those parts are periodically notified and are periodically notified: pollution and its fall;New Accounting Standards (IND-AS); New Critical Goods and Services Tax (the complete complications that will take place in the near future); Various changes to income laws and compliance - such as limits on interest approval, income calculation and disclosure norms; And more In most parts of the time and effort of businesses and professionals (especially the small and the middle ones), the law is struggling to face many of these critical changes, which have clearly focused on the business or business of their business.
A new tax law will increase this contrast, destroying business confidence. Experience has also shown that it will increase tax liability, the fact that the new law's plan and language will be quite different, will ensure the persistent legal issues. Where is the ease of doing business?
Actually what is required is not a new tax law, but simplification of procedures, reducing paper paper (or online work, current status) and presentation of the responsibility of tax officials. These rules can only be achieved by change, although they have a desire to do so. One is hoping that taxpayers do not end up suffering to increase the enthusiasm in the new law, they have to face the new tax laws attack.
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