The Central Board of Direct Taxes (CBDT) on Thursday suggested that the government should draft the tax laws in a manner so that their intent comes out more forcefully and plug possibilities of  misinterpretation of laws to benefit vested interests as also prevent chances for dragging the interpretation of laws to courts and tribunals.

The aforesaid recommendation was made by Member (Income Tax), CBDT Ms. Anita Kapur while inaugurating the International Tax Conference organized by PHD Chamber of Commerce and Industry here today, indicating that the government should keep this approach in mind while redrafting the crucial Direct Taxes Code (DTC) and other such legislations.

“The intent of the laws particularly those of tax laws in modern times matter much more and acquire significance for developing nations like India that is attempting to woo cross border investments to revive its economy for growth, manufacturing, creating demand and host of other such things so that interpretation of the laws are not misinterpreted time and again on account of linguistic hyperboles which are filled in Indian statutes law” she said.

According to her, when the intent in the laws exhibit its meaning and becomes more visible and pronounced, its misinterpretation is prevented to enable the country earn large volumes of revenues and stop enterprises evade and delay payment of taxes and refuge it to take the legal recourses to further delay and avoid the tax payments.

 The attempt of the government should be to draft laws that can be condensed and compressed in thinner volumes of the statutes as practised in economies of scale especially that of United Kingdom which is known worldwide for drafting its GAAR laws, Ms. Kapur stressed.

On a suggestion mooted by the Chairmen, Direct and Indirect Taxes Committees of PHD Chamber Mr. Anil Chopra and Mr. J K Mittal that tax disputes to an extent of Rs. 4 lakh crores, pending in various courts and tribunals for finding a suitable solution, Ms. Kapur was of the view that such disputes have little possibilities to occur with tax laws whose intent is super imposed.

Mr. Chopra and Mr. Mittal held that the new government can attract vast volumes of cross border investments by making its tax laws simpler and clearer so that the possibilities  of tax disputes is halted and the government earns its revenues efficiently.

 President of the PHD Chamber Mr. Sharad Jaipuria in his welcome address urged the government to resolve the tax controversies that have recently arisen due to multiple factors so that cross border investments are not halted and on the contrary facilitated to enable India attract both currencies and technologies to promote manufacturing.

The Senior Vice President of PHD Chamber Mr. Alok B Shriram and its Vice President Mr. Mahesh Gupta also suggested that simpler and modest laws would serve India better and take care of its economic interests in fair and equitable manner so that all stakeholders in India’s growth story become equal participants.

More Under Income Tax

Posted Under

Category : Income Tax (28344)
Type : News (13980)
Tags : CBDT (696)

Leave a Reply

Your email address will not be published. Required fields are marked *

Featured Posts