SIMPLIFICATION OF TAXES
Elon Musk and Donald Trump plan for a simplified tax code: What it means for your wallet
Elon Musk and Vivek Ramaswamy, potentially under a Trump administration, are considering simplifying the U.S. tax code, possibly implementing a flat tax system. This could streamline filing, but also eliminate deductions benefiting low and middle-income families. While potentially boosting take-home pay and incentivizing work, it could also exacerbate the wealth gap and impact government revenue.
Budget 2025 expectations: Old tax regime continuation, capital gains tax simplification, reliefs on NPS, crypto, and more: Here's what experts want
With Union Budget 2025 around the corner, experts are voicing what they would want from FM Sitharaman in February next year. Some proposals include enhancing the appeal of NPS as a retirement planning vehicle, reducing TCS on foreign remittances, and tax reliefs for annuity, crypto, and term insurance. Read on to know what India expects from Budget 2025
Revenue Secretary Sanjay Malhotra to be RBI Governor
Sanjay Malhotra, a 1990-batch IAS officer, has been appointed as the next RBI governor for a three-year term, succeeding Shaktikanta Das. He takes charge amid high inflation and slowing growth, facing the challenge of balancing economic recovery with price stability. Malhotra, currently revenue secretary, has a strong background in taxation reforms and financial services.
Simplify ITR forms, bring 'one rate one section' for TDS: Deloitte survey
A Deloitte survey reveals that most income tax filers in India want simpler ITR forms, easier incentive calculations, and a streamlined TDS framework. Respondents also suggested simplifying tax audit reports and TDS/TCS return filing processes. The survey recommends consolidating TDS sections and using simpler language in tax laws for better clarity and compliance.
Need to simplify GST and reduce cess: Ex CEA Subramanian
India's GST regime is highly complex with over 50 different cess rates, possibly reaching 100, highlighting the need for reform. Former Chief Economic Adviser Arvind Subramanian emphasizes the need for simplification and rate rationalization, while addressing issues of excessive tax demands and tax terrorism under the current system.
Need holistic new Tax Code for Vikshit Bharat: Experts
Experts call for tax reforms before the upcoming budget. They suggest a simpler tax system with lower rates and a wider base. This aims to increase revenue and boost the Indian economy. A key proposal is to reduce GST slabs. Experts believe this will increase disposable income and attract foreign investment.
- Go To Page 1
Simplified I-T Act likely to take longer
Reform of dispute resolution mechanisms, simplification of litigation management, overhaul of rules dealing with transfer pricing and tax deduction at source are some of the top focus areas in the simplification exercise, the official said, adding that wider consultation is needed with the law ministry on provisions of the Benami and Black Money Acts. "Some provisions require a deeper examination. Also, there are areas where there are conflicting views within subcommittees," the official said.
Govt to exceed FY25 direct tax collection target: CBDT chief
India's Central Board of Direct Taxes (CBDT) chairman announced expectations of exceeding the current fiscal year's direct tax collection target of Rs 22.07 lakh crore. Strong growth in both corporate and non-corporate tax collections fuels this optimism. As of November 10th, over Rs 12.11 lakh crore has already been collected.
Amnesty Scheme for Customs, easier tax compliance on India Inc's Budget wishlist
Indian industry bodies have submitted their wishlist for the upcoming budget, calling for an amnesty scheme for customs, tax cuts for individuals and LLPs, and streamlined tax compliance processes. They also urged the government to expedite faceless appeals, establish a dedicated dispute resolution system, and boost infrastructure spending.
How about government giving 'consumption vouchers' to boost Indian economy?
CII proposes consumption vouchers for low-income citizens to boost demand. The vouchers can be used for specific goods and services. CII also recommends a 40% hike in MGNREGA wages and a 33% increase for PM-KISAN beneficiaries. Tax reforms and increased capex are also part of the suggestions. CII suggests a three-slab GST structure and faster dispute resolution.
Tax reforms, simpler customs procedure top Budget wishlist
Indian industry bodies met with revenue secretary Sanjay Malhotra. They presented their tax proposals for the upcoming budget. The Federation of Indian Chambers of Commerce and Industry (FICCI) proposed comprehensive tax reforms. The Confederation of Indian Industries (CII) suggested simplifying the goods and services tax (GST) regime.
CII pitches for further reform in taxation system, sustaining capex in FY25 Budget
The Confederation of Indian Industry (CII) has recommended a 25% increase in capital expenditure for the 2025-26 budget, focusing on rural infrastructure, agriculture, and social sectors. They emphasized the need for tax reforms, including simplification and broadening the tax base, to enhance India's global competitiveness.
Revenue dept forms 22 sub-committees to review I-T act
The Indian government has formed 22 sub-committees to reassess the Income Tax Act, aiming to simplify it and make it more user-friendly. Finance Minister Nirmala Sitharaman reviewed the progress of this initiative, which has already received 6,500 public suggestions. The goal is to introduce a draft bill during the upcoming budget session.
I-T dept receives 6,500 suggestions on income tax act review
The income tax department received suggestions for the Income Tax Act review. Finance Minister Nirmala Sitharaman chaired a meeting on the review. 22 sub-committees were established to examine the Act. The committees held meetings with experts to discuss improvements. The finance ministry received 6,500 suggestions through the portal. The CBDT invited public input for the review last month.
Karnataka, TN among top 5 states in direct tax collections
Karnataka and Tamil Nadu rank second and fourth among top states contributing to 70% of India's direct tax collections, with Maharashtra leading. Maharashtra, Delhi, Karnataka, and TN have above-average per capita tax contributions. Income tax returns filing peaks in Maharashtra, followed by Uttar Pradesh, Gujarat, Rajasthan, and TN.
Crorepati taxpayers club gets bigger, rises 5X to 2.2 lakh in AY24
This growth is part of a broader trend, which showed a 74.2% decline in income disparity for earners up to Rs 5 lakh between FY14 and FY23. Also the number of female taxpayers reached 15% of all taxpayers. The report attributes this shift to the government's progressive taxation regime and tax simplification efforts.
Govt should prioritise review of Income Tax Act, get it passed as money bill: SBI Research
SBI Research has called for a quick review of the Income Tax Act, urging that it be introduced as a money bill for faster passage. The report suggests raising the TDS threshold on bank interest payments and allowing annual issuance of TDS certificates.
Relief against income tax offences: New compounding guidelines issued by CBDT to help taxpayers in preventing prosecution
Income tax offences: Now you will have to follow the revised guidelines for compounding of income tax offences under the Income Tax Act, 1961. This is helpful for those taxpayers who want to settle their case under income tax if its already under prosecution. "The revised guidelines supersede all existing guidelines on the subject and would apply to pending as well as new applications, from the date of its issue."
Income tax department issues revised guidelines for compounding of offences
On Thursday, the income tax department announced revised guidelines for compounding offences under the I-T law, simplifying the process and lowering charges. These guidelines will apply to pending and new applications, removing offence categorisation and application limits, and rationalising compounding charges to promote ease of compliance.
CBDT forms internal committee to comprehensively review Income-tax Act, invites suggestions on the tax e-filing portal
The Central Board of Direct Taxes has formed a committee to review the Income-tax Act, 1961. This follows the Union Budget 2024-25 announcement. Public inputs are invited to simplify the Act, reduce litigation and compliance, and eliminate outdated provisions. The aim is to make the Act clearer and minimize tax disputes, providing greater certainty for taxpayers.
Tax dept invites public suggestions for I-T Act review
The Income Tax department has sought public opinions to simplify the six-decade-old Income-tax Act, focusing on clearer language, reducing disputes and compliance, and removing outdated provisions. Inputs are solicited in specific categories through a designated webpage, with the review expected to conclude by January 2025.
Income tax simplification hopes rise as feedback process nears rollout; Budget 2025 may bring big news on direct tax laws
The govt will invite suggestions from the private sector and tax experts on the Income Tax Act, 1961, starting October. This initiative aims to simplify the direct tax law by reducing outdated clauses and mitigating litigation. The amended Act is expected to be presented in the Budget session of Parliament in early 2025.
Encourage compliance rather than enforcement: Highlights from FM Sitharaman's Income Tax Day speech
Finance Minister Nirmala Sitharaman highlighted key points during her speech on Income Tax Day, emphasising the need for tax authorities to use simple language in notices and circulars for better understanding. She mentioned receiving 58.57 lakh ITRs from first-time taxpayers and plans for a new Tax Code to reduce litigation. Sitharaman stressed on a friendly approach to encourage compliance, improving transparency, and efficiency in tax processes.
Budget is not all about taxes; there¡¯s also a signalling on more even wealth distribution: N Jayakumar
N Jayakumar, MD of Prime Securities, emphasized the importance of inclusive growth in India post-Covid. He highlighted the need for fair wealth distribution through increased taxes on high earners. Jayakumar also pointed out the strength of the retail investor base in India and recommended sectors like telecom infrastructure, generic pharmaceuticals, and sustainability for investment.
Govt wants to encourage longer-term investment and not speculation via derivatives or short-term trading: Finance Secretary
The Finance Secretary, TV Somanathan, clarified that the recent tax adjustments aim at simplifying the tax structure and slightly increasIng revenues, while encouraging long-term investments and discouraging short-term trading. He highlighted the need to balance various financial assets and the government's continued support for financialisation. Concerns over speculative actions in derivatives markets were also addressed.
No gains, no tax. Markets to take tax hikes in stride
The budget highlights fiscal prudence, skilling, social sectors, and domestic manufacturing, with higher Capital Gains Taxes and tax simplification effective April 2025. Amid an overvalued equity market, cautious investing is recommended. Private sector banks remain attractive, balancing increased IPO and rights issue issuance. While economic growth hasn't fully boosted employment, investment flows stay robust.
ETMarkets Smart Talk: Reforms to attract FDI, simplification of tax regime & green energy likely in Budget 2024: Gurpreet Sidana
The positive trends in global markets, favourable domestic economic data, and optimism regarding corporate earnings growth have further bolstered market sentiment.
Strategic reforms in customs duties, GST, commerce to push India's inclusive growth, says GTRI
The think tank suggested increasing the GST exemption limit for a firm's annual turnover from 40 lakh to 1.5 crore as this will be transformative for India's MSME sector, promoting job creation and growth. Firms with less than Rs 1.5 crore turnover make up over 80 per cent of registrations but contribute less than 7 per cent of the tax collected, it said adding a yearly turnover of 1.5 crore equals 12-13 lakh monthly turnover, translating to just Rs 1.2 lakh at a 10 per cent profit margin.
CBIC notifications use complex language; need simplification to help industry: GTRI
The Global Trade Research Initiative (GTRI) said for this the CBIC (Central Board of Indirect Taxes and Customs) must use services of communication experts for help in drafting easy to understand notifications containing necessary details.
Load More
