The Centre is yet to take a call on whether a new Direct Taxes Code should be framed or the existing income tax law will be revamped, Sanjay Malhotra, Revenue Secretary, said.
“Whether it will be a completely new Code or whether existing Income Tax Act will be revised. Both the options are open. Purpose will be to make the law simple to read,” Malhotra said at a post-Budget conference, organised by industry body Assocham in the Capital.
The review exercise would also involve consultations with stakeholders, he added.
In her Budget speech, Finance and Corporate Affairs Minister Nirmala Sitharaman had said the Government would undertake a comprehensive review of the Income Tax Act to make it easy to read.
“The purpose is to make the Act concise, lucid, easy to read and understand. This will reduce disputes and litigation, thereby providing tax certainty to the taxpayers. It will also bring down the demand embroiled in litigation. It is proposed to be completed in six months,” Sitharaman said.
Meanwhile, Malhotra on Friday also asserted that the latest rationalisation of capital gains tax in Budget should not be seen as a “revenue augmentation” effort, but be viewed as a simplification exercise.
“All of you (industry) had asked for simplification of capital gains tax regime. So the Budget has delivered on it. Simplification does not mean that tax rates will come down. Please appreciate that government needs revenues. Let’s be prepared that some rates will go up and some will come down. Simplicity has its own virtues,” Malhotra added.
Speaking on the occasion, Sanjay Kumar Agarwal, Chairman of Central Board of Indirect Taxes & Customs (CBIC), said the Budget proposals on the Customs front would enhance the competitiveness of domestic industry. He also expressed confidence that the Goods and Services Tax (GST) collection target for 2024-25 would be comfortably met going by the collection trend in the first quarter this fiscal.
