Delink amendments to direct laws from Budget: Assocham

Tribune News Service

New Delhi, January 29

Welcoming the decision of the government not to press for further litigation in the Vodafone tax dispute case, industry body Assocham said there are several loopholes in the tax laws which make it quite adversarial to the taxpayers and investors.

Releasing the pre-Budget memorandum for 2015-16, chairman of tax council Ved Jain said these loopholes relate to, among others, scrutiny of assessments in physical mode asking the assessees to be physically present, arbitrary interpretations and rules on TDS, delays in income tax refunds and lack of a Master Circular clarifying the contentious issues.

“Many of the provisions in substantive as well as in procedural direct tax laws are not equitable and fair. Many of the provisions are unfair and heavily biased in favour of the tax administrators with no accountability,” Assocham secretary-general DS Rawat said.

The chamber suggested that the tax department should use the e-technology during assessment proceedings. The officer can issue a notice electronically specifying the issues and asking the taxpayer to submit reply with evidences.

It has suggested that amendments to the direct laws other than the tax rates should be delinked from the Budget exercise, since it is a confidential exercise.