Press Information Bureau
Government of India
Ministry of Finance
15-December-2015 19:57 IST

CBDT takes various significant decisions in last three months for providing better taxpayer services, improving ease of doing business and reducing the burden of compliance on the tax payer .

The Central Board of Direct Taxes (CBDT) has taken a number of decisions over last three months with the objective of providing better taxpayer services, improving ease of doing business and reducing the burden of compliance on the tax payer.

Some of the significant decisions taken are

  1. Acceptance of A.P Shah Committee’s recommendations regarding applicability of MAT on Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI).
  2. Decision that MAT will not apply to foreign companies having no PE in India.
  3. Simplification of procedures for submission of Form No 15G and Form No 15H for furnishing self declaration for lower deduction or no deduction of tax.
  4. Notification of Transfer Pricing Rules to incorporate “range concept” and use of “multi year data” to reduce litigation on transfer pricing issues.
  5. Launching of “e-sahyog” Pilot Project to provide online facility to resolve mismatch of prepaid taxes in Income Tax Returns.
  6. Setting up of Committee with a view to simplify the provisions of the Income Tax Act, 1961.
  7. Phasing out plan of deductions under the Income Tax Act with reduction in tax rates for corporate taxpayers– extension of time for submission of comments.
  8. Notification of Income Computation and Disclosures Standards (ICDS) under section 145(2) of the Income Tax Act.
  9. Notification regarding income from off-shore Rupee Denominated Bonds.
  10. Decision to expedite issue of refunds below Rs.50,000/- for A.Y. 2013-14 and 2014-15 for cases not selected for scrutiny.
  11. Monetary limits for filing appeal by the Income Tax Department before Tribunal and High Courts enhanced from Rs.4 lakh and Rs.10 Lakh to Rs.10 lakh and Rs.20 lakh respectively with retrospective effect.

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Category : Income Tax (25484)
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0 responses to “11 Measures taken by CBDT recently to simplify Tax Compliance”

  1. P Aravindhan says:

    There is nothing simple about new procedure for 15G/15H. Huge cost of compliance added to Banks.
    CBDT is still in the process of issuing guidelines on “simplification of 15G/15H” but they want compliance from 1st October. Hardly a week was given for compliance, which is nothing but TDS terrorism.

  2. Rajashekar Nadig says:

    1) As per the latest information provided by Directorate of Income-Tax (Systems), New Delhi against application filed U/s 6(1) of RTI Act, it is evident that only 69,630 CAs are practicing, who are unevenly spread throughout India. India is highly populated country, existing number of practicing CAs does not meet the requirement of our economy. Due to ceiling on number of tax audit, Non-CA Tax Professionals handling tax audit cases have to roam around in search of empty slots of CAs to give compliance in case of their clients during due dates. This has also resulted in high cost of compliance, due to high demand & extra payment made for reservation of empty slots of CAs.
    (2) CA Certificates in Income-Tax Act are causing strict hurdle for voluntary compliance not only in Income-Tax Act, but also in other Central & State Govt. taxation laws. In another 10 years, Non-CA’s who entered the Tax Practice in 1980’s will all eliminate & Govt. has to rely on only CA’s for seeking compliance under all Indian taxation laws. Strenuous efforts of Institute of Chartered Accountants of India to expand the demand & supply gap of Chartered Accountants since 1984, with the motto of giving full employment to existing 69,630 practicing CA’s throughout India, have increased the cost of voluntary compliance of return filing in Non-Corporate Tax Audit cases under Income-Tax Act.
    Can any one provide me that any of the measure to redress the problem mentioned in Para No.1 & 2 above have been included in these 11 measures taken by CBDT on 15h December 2016
    Reply
    – credit BSK Rao

    • BSKRAO says:

      Thanks Rajashekar Nadig Sir, for supporting my views. What I am expressing is the reality. Learned IRS/IAS officials sitting in A/c room will not understand the issues at gross root level. I invite IRS/IAS officials of Deptt. of Revenue to visit my office to know how compliance is given under Indian taxation laws & what are the strict hurdles for voluntary compliance.

  3. BSKRAO says:

    (1) As per the latest information provided by Directorate of Income-Tax (Systems), New Delhi against application filed U/s 6(1) of RTI Act, it is evident that only 69,630 CAs are practicing, who are unevenly spread throughout India. India is highly populated country, existing number of practicing CAs does not meet the requirement of our economy. Due to ceiling on number of tax audit, Non-CA Tax Professionals handling tax audit cases have to roam around in search of empty slots of CAs to give compliance in case of their clients during due dates. This has also resulted in high cost of compliance, due to high demand & extra payment made for reservation of empty slots of CAs.

    (2) CA Certificates in Income-Tax Act are causing strict hurdle for voluntary compliance not only in Income-Tax Act, but also in other Central & State Govt. taxation laws. In another 10 years, Non-CA’s who entered the Tax Practice in 1980’s will all eliminate & Govt. has to rely on only CA’s for seeking compliance under all Indian taxation laws. Strenuous efforts of Institute of Chartered Accountants of India to expand the demand & supply gap of Chartered Accountants since 1984, with the motto of giving full employment to existing 69,630 practicing CA’s throughout India, have increased the cost of voluntary compliance of return filing in Non-Corporate Tax Audit cases under Income-Tax Act.

    Can any one provide me that any of the measure to redress the problem mentioned in Para No.1 & 2 above have been included in these 11 measures taken by CBDT on 15h December 2016

  4. Nem Singh says:

    Good decision but there should be procedure reforms in the concerned departments so that the assessee feels good and motivate to pay more taxes.

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