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Govt to bring revised Direct Tax Code with comprehensive review in 6 months: Revenue Secretary
Jul 25, 2024
- Approach towards taxation to be in mode of collaboration and not confrontation
NEW DELHI, 25 July 2024: Mr Sanjay Malhotra, Secretary Revenue, Ministry of Finance, Govt of India today while addressing ‘FICCI’s interactive session on Union Budget 2024-25’ said that the government is working towards a comprehensive review of the Direct Tax Code, which will be prepared by the internal committee and then shared for stakeholder consultation within next 6 months. “We will have a consultation process and how it will happen that we will decide. We would like to have a collaborative approach for implementation,” he added.
The Revenue Secretary further stated that the efforts of the government will continue to provide a hassle free, simple and adopt a collaborative approach towards implementation of taxes. “Our approach towards taxation has always been and will continue to be in the mode of collaboration and not confrontation. The purpose of our proposals, both on the policy side as well as on the implementation side, are to collect taxes from wherever they are due but do it in a manner that gives respect, trust to the taxpayers and collect them in a smooth and hassle-free manner,” he added.
Highlighting the broad themes of the Union Budget, Mr Malhotra said that the whole effort in the budget is how to make the tax process simpler for the taxpayers. On the indirect tax front, abolition of angel tax, decriminalizing the laws, reduction in duties are some of the budget proposals benefiting industry.
Mr Ravi Agarwal, Chairperson, Central Board of Direct Taxes, Ministry of Finance said that the new tax regime with new slabs and rates is beneficial for all and around 2/3 of the total taxpayers filing the returns have opted for the new tax regime. He also highlighted the benefits of rationalization of taxation on capital gains, reduction in TDS rates along with litigation and appeals.
Mr Sanjay Kumar Agarwal, Chairperson, Central Board of Indirect Taxes and Customs, Ministry of Finance said that the indications on the indirect taxes in the Union Budget 2024-25 is clear that we need simplified taxation and rationalized rates to enhance supply chains and ensure our industry remains competitive globally.
Mr Harsh Pati Singhania, Past President, FICCI and CMD, JK Paper Ltd said, “By addressing the near-term challenges, while keeping an eye on the long-term, the government has assured that this budget is growth oriented, inclusive and will create opportunities for all sections of the society.” He further added that the indirect tax proposals are aligned with focus on promoting domestic value addition, reducing trade bottlenecks, curbing litigation and improving the ease of doing business.
“While introduction of Vivad Se Vishwas scheme in respect of direct tax matters is a step in the right direction, we believe a similar scheme to resolve pending disputes under customs is much needed and would go a long way in reducing litigation on customs matters,” he noted.
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