New Delhi: The Central government is currently conducting a comprehensive review of the Direct Tax Code through an Internal Committee. The updated code will be open for stakeholder consultation within the next six months. Revenue Secretary Sanjay Malhotra highlighted that departments will be engaged in this consultation process, with specific details to follow. He stressed the importance of fostering a collaborative approach to its implementation.
During an interactive session on Union Budget 2024-25 organised by the Federation of Indian Chambers of Commerce & Industry (FICCI), the Revenue Secretary emphasised the government's commitment to ensuring a hassle-free and straightforward approach to tax implementation.
He reiterated that their approach to taxation is rooted in collaboration rather than confrontation. He further stated that the aim of their proposals, both in policy and implementation, is to collect taxes where due while treating taxpayers with respect and trust, ensuring a smooth and trouble-free process.
Sanjay Malhotra highlighted that the main aim of this Budget is to simplify the tax process for taxpayers as much as possible. On the indirect tax front, proposals such as abolishing the angel tax, decriminalising laws and reducing duties are directly aimed at benefiting the industry.
Besides him, the Chairperson of the Central Board of Direct Taxes, Ministry of Finance, Ravi Agarwal, emphasised the positive impact of the new tax regime with revised slabs and rates, which have been chosen by approximately two-thirds of taxpayers filing returns. He also emphasised the advantages of rationalising capital gains taxation, reducing TDS rates and addressing litigation and appeals.
From the industry side, the Past President of FICCI and CMD of JK Paper Limited, Harsh Pati Singhania, stated that the government's budget addresses immediate challenges while laying the foundation for long-term growth. He noted that the indirect tax proposals focus on promoting domestic value addition, easing trade barriers, reducing litigation and improving the business environment.
Harsh Pati Singhania also added that introducing the Vivad Se Vishwas scheme for direct tax matters is a positive step and the industry believes a similar initiative to resolve pending customs disputes is necessary and would significantly reduce litigation.
