The Centre proposes to come up with a revised comprehensive Direct Taxes Code for stakeholder consultations within the next six months, Revenue Secretary Sanjay Malhotra said on Thursday.
Addressing FICCI’s interactive session on Budget 2024-25 in the Capital, Malhotra said that the government is working towards a comprehensive review of the Direct Taxes Code, which will be prepared by the internal committee.
“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.
Malhotra said 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.
Simple tax process
Highlighting the broad themes of the Union Budget, 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, decriminalising the laws, reduction in duties are some of the Budget proposals benefiting industry.
Ravi Agarwal, Chairperson, Central Board of Direct Taxes, Ministry of Finance, said 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.
Sanjay Kumar Agarwal, Chairperson, Central Board of Indirect Taxes and Customs, Ministry of Finance, said the indications on the indirect taxes in the Budget is clear that “we need simplified taxation and rationalised rates to enhance supply chains and ensure our industry remains competitive globally”.
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 also said 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,” Singhania noted.
