Pointing out some emerging issues in income tax and GST, Revenue Secretary Tarun Bajaj said there is a need for reforms in both direct and indirect taxes.
He mentioned “We have to rationalise rates under the Goods and Services Tax,…reduce the number of slabs and relook at exemptions. Then there are some issues like online gaming, and the setting up of tribunals. Such issues will keep coming up, so they need to be resolved.”
He also added to get gas and aviation turbine fuel into GST.
Bajaj said,“On the direct taxes side, about two, or three issues. One is to fix the capital gains on all fronts. Second is the personal income tax and the third is to rewrite the code to simplify it. If you do that, litigation will reduce”.
Further, there is a need to rewrite the personal tax regimes to make the new regime better than the old one.
Bajaj said,“Under the new regime, the exemption limit is ?2.5 lakh while in the old scheme you don’t have to pay any taxes up to ?7.5 lakh. Most people fall within this income bracket and so they have no incentive to come to the new tax regime”.
The Revenue Secretary said that the Government is simplifying the tax structure but more reforms are needed.
“We are now trying to provide one income-tax return form in place of six. This itself is a way toward simplification. We have introduced a faceless system in direct tax and customs. We have brought in a lot of reforms but there are still a lot of things that need to be done,” said Bajaj.
Source: Economic Times
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