Free start-ups from taxation mesh; law should facilitate fund inflows in new enterprise: ASSOCHAM to Govt
Tuesday, October 06, 2015
In a pre-Budget submission to the Finance Ministry, the ASSOCHAM today sought a taxation friendly environment for the start-ups which should be freed from several restrictions on shareholding pattern, as the budding entrepreneurs stay in the fund infusion phase for the initial years of their business.
“Rrestriction prescribed under Section 79 of Income Tax Act (IT Act) should not apply to start up ecosystem where change in shareholding pattern is due to infusion of funding by Investors without change in the management of the company run by original founders”, the chamber said in its presentation submitted to the Revenue Secretary here today.
Rigours of section 79 of the IT Act should be restricted only in cases where the change in shareholding is effected with a view to avoid or reduce tax liability by way of a restructuring exercise.
“A timely clarification to resolve this anomaly for the benefit of entire new areas, creating business and start-up culture which will lead in employment generation for millennial generation and making Digital India dream come true,”, the chamber memorandum for consideration in the Budget, highlighted ASSOCHAM.
It said the tax authorities should treat each taxpayer as a customer of the Tax Department and make adversarial approach between taxpayer and department a thing of the past.
“Customer focus should be strengthened and taxpayers should be provided with facilitating services to encourage him to comply with the taxation rules which should be easy”, said Mr D S Rawat Secretary General ASSOCHAM.
The chamber also suggested merger of Central Board of Direct Taxes (CBDT) with the Central Board of Customs and Excise into a single Central Board of Revenue. Administration functions should be separated from the law-making jobs. Other suggestions included carrying out impact assessment studies of various tax policy measures and trade flows trends
Source- Press Release by ASSOCHAM dated- 06.10.2015
Namaste ~ We live in the land of Laws. If someone really sits and compiles as to how many compliance’s are required, it should be really interesting. Virtually with everything going on line, the entire department’s major work is completed by a dealers office. Almost all the data is available on site and it will be interesting to know that there is lot of duplication of work. This only results in additional time consumption and no real output. Most of the dats is not used by the department’s in a systematic way. They only know to push one button on comp to generate notices. And as if the dealer is there to reply to this notices. What sort of friendly atmosphere is generated. Where is the ease.
Do we really need so many laws and compliance’s, that is nothing but network of confusion, a web that never resolves itself but entangles more n more. And whose ego is being fed against whom. Are we really living in freedom. Most of us have become just time machines, robots. Selflessness is buried under selfishness.
Laws are to make life more easy flowing but ……………………………..
Make thing more n more simple in practice and not only by talks and statements.
First bring in the law of selflessness.
It the requirement of time. The Tax authorities need to be friendly with the Tax Payer and should understand the their requirment. Moreever they they are paying from thier hard money.
Sir, why only start -ups. Why not the regular tax payers, small & big. Is it not time that they be stripped of the powers to “RULE” ( read harass ) with the powers to “ADMINISTER”. They get huge pensions for rest of life for 20-25 years of service out of the tax payer’s money – while tax payer get nothing. All these was designed for the British Officers to loot & divert all the wealth of this country. But why should it be allowed to continue today.