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  • Saturday, May, 2024| Today's Market | Current Time: 04:13:36
  • New Delhi : The central government is ensuring that the benefits of the new tax regime trickles down to each and every section of the taxpayers community through the announcements made in the Union Budget stated Mr. Nitin Gupta, Chairman, Central Board of Direct Taxes, (CBDT), Ministry of Finance at the Post Budget Conference ”Analysis of tax-related proposals” organized by apex trade association- ASSOCHAM.

    At his keynote address at the event, Mr. Nitin Gupta stated that the government’s main objective is to ensure more money in the hands of the common man and hence proposed expanding the entitlement for rebate of tax to Rs 7 lakh from the earlier Rs 5 lakh.

    “Consider that even under the proposed new regime, standard detection of rupees Rs 50,000 is allowed. So, in effect, the salaried class will now not have to pay any tax on an income of Rs 750000 annually,” he said.

    According to Mr. Gupta, the benefit at a higher level of income would be determined by the amount of deduction which a taxpayer is intending to claim. He added that the finance minister has tried to simplify the process. “It is hassle-free. It does not require the taxpayer to maintain any documentation and is easier for the tax administration to administer the regime. The experience has been very positive in the corporate sector where the induction of deduction and exemption-free regime has been introduced, and we anticipate that the response to the proposal will be fantastic,” he added.

    Mr. Nitin Gupta also informed that there has been some apprehension in the media about the effect of post-amendment to section 56(2)(viib) on start-ups. He said, “Let me clarify that it is unfounded. Also there has been a slew of measures for the cooperative sector which would benefit them,”

    He also stated that the income tax department had already issued a detailed guideline about decriminalisation of offences in September 2022.

    Ms. V. Rama Mathew, Member Tax Policy, Central Board of Indirect Taxes and Customs (CBIC) stated that the union budget needs to be looked at from the perspective of ease of doing business.

    “Over the last three years, there has been a deliberate shift from enforcement-based activity. We have rationalised the data flow and integrated it into the system. Make sure that one follows the other and that you cannot proceed to the next stage unless you have completed the first,” She explained.

    She informed that the government has put processes in place making it difficult for anyone to commit frauds.

    Mr. Kamlesh C Varshney, Joint Secretary, TPL – I, CBDT stated that the budget 2023 focuses on providing relief to the middle class and making it appealing for people to switch to new tax regimes.

    “The thought process is very clear. This government in 2015 announced that we will move away from the exemption regime and lower the tax rates. So far, we have more than 60 percent of corporate income under the new concessional regime and less than 40 percent under the old regime. This has been successful.”

    According to Mr. Rahul Garg, Chairman, National Council on Direct Taxes, ASSOCHAM, while tax rates are not raised, tax collections are increasing. Furthermore, the tax GDP ratio is intended to improve tax enforcement efficiency.

    “A policy shift favours encouraging voluntary compliance while also addressing the goal of ease of doing business. The Finance Ministry’s tax GDP ratio is a targeted strategy that guides businesses toward responsible tax behaviour”, he added.

    Mr. Vikas Vasal, Co-Chairman, ASSOCHAM’s National Council on Direct Taxes, and National Managing Partner – Tax, Grant Thornton Bharat, stated that amidst the rise in global uncertainties at the moment, this year’s budget is bold and progressive. The consistent theme in the tax policy over the years has been to provide clarity, certainty & predictability.

    Mr. Nabin Ballodia, Partner and Leader (North), Tax and Regulatory Services, BDO India, emphasised the provisions for independent stock valuation and CSR input tax credit, as well as his concerns for greater clarity in the provisions. He stated that insurance taxation and capital gains deductions should be reconsidered.

    Mr. Rakesh Nangia, Co-chairman, National Council on International Taxes, ASSOCHAM & Chairman, Nangia Andersen India Pvt Ltd said that the year 2022 was special for India as it became the 5th largest economy in the world. “This year’s budget prioritised job creation and job opportunities, railways and logistics, infrastructure, education, the green growth agenda, and inclusive sustainable growth.” he said.

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