New Delhi (NVI): With a broader tax base, there is a chance of tweaking tax rates as there was a large portion of unorganised sector which can be encouraged to become part of tax framework now, CBDT Chairman PC Mody said today.
The CBDT Chairman’s views come just three days after the government revised the income tax slabs in its Union Budget.
“As the tax base gets broader, there is a chance of tweaking the tax rates as there is a large portion of unorganized sector which is outside the tax framework and they should be encouraged to become part of tax framework,” he said here while speaking at an ‘Interactive Session on Union Budget 2020-21’, organized by FICCI.
“Once that happens, the accuracy of filing returns would also improve and if that increases the tax base then there would be a case in future to further lower the taxes,” he said.
The CBDT Chairman added that the Government’s primary onus is to move towards a simple, lean and straightforward tax structure and one that is easy to comply with.
He said the government wants to trust the taxpayers and is making an effort to move the tax administration in that direction.
“The government is making all efforts to put in place a system that offers best and seamless services to the taxpayers,” said Mody.
There is much greater unanimity in the government now towards building synergies between the taxpayer and tax administration, he said, adding, “With ease of compliance at the core of the entire approach we would want to make pre-filled return forms available to the taxpayers.”
On ‘Vishwas se Vivad’ scheme, he said, “An in-depth review of the issues related to litigation have been undertaken in order to minimise disputes. We have moved towards a faceless assessment system and hope to move towards a system of faceless appeals as well.”
Under the scheme announced in the Union Budget-2020, taxpayers whose tax demands are locked in dispute in multiple forums can pay due taxes by March 31, 2020, and get complete waiver of interest and penalty.
