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The selection committee was established for the purpose of checking the bill.
Panda said that the first draft of the bill was prepared in the House in the budget session of the House this year, while the selection committee wanted to ensure that simplification exercise does not give birth to words that are open for different interpretations, Panda said.
The number of words is reduced by more than 500,000.
Overred access code proposal accepted
The chairperson said that the committee accepted the proposal in the draft bill about the powers of tax authorities to override the access code in the computer in case of non-compatible assessment in some circumstances, as it did not get any changes in the law, as it still exists, including the internal circular of the judicial pronunciation and income tax department.
The provision to allow tax authorities to access computer and digital systems, even allows their access code to override, when the request is not complied for information, in some cases of unknown income or foreign assets, anxiety arose among professionals.
“New India deserves a simple, easy-to-easily, easily Complication Income Tax Act and is the first major step to simplify the Act as it exists. The draft the government in Parliament had already seen a huge simplification as a lower word count, which is in favor of better clarity in language and clarity in the language.
Panda said that the bill did not mean concrete changes in the law and the committee’s mandate was to be visited for simplification.
He said, “Our mandate was to create this Act because it is present, clear, simple and easy to comply,” he said, the committee received a lot of suggestions which were beyond the scope of its mandate and demanding policy changes. They can be taken in various forums like annual finance bill every year. “But what we have achieved is within our mandate.”
Panda said that from time to time, generous and supportive policy changes were being presented by the government from time to time, but many such measures were caught in the complexities of the tax law.
“Now, when this bill becomes a law and replaces the Old Act, it will reduce ambiguity and it will reduce litigation dramatically because the complexity decreases significantly.”
“The existing Act had become so complicated that with the experience of sometimes decades, very senior professionals could not give you a clear answer about the tax capacity of some objects. In the new bill, it becomes very simple to understand what is taxable, what is not taxable, not taxable and what is taxable at the rate,” Panda said.
“Our mandate was to ensure that simplifying the Act is internal to avoid unknown errors that can turn into language.”
Largely investigated
He reported that the confusion about the discovery of tax authorities and the seizures, as provided in the bill, was due to “misinformation”. The committee had investigated it on a large scale, he said.
Panda said, “Let me clarify this, there is no change in the law,”
“The Income Tax Act is on the dates before 1961. On the issue of privacy and on the issue of discovery and seizure, many decisions of the High Courts and Supreme Court have been taken. There have also been internal circulars about checks and balance; search and seizure can not be subjective, when you carry the current act, it may be as the current act and court.
The law was written when there was no computer and when they came, the accounts became electronic documents, the panda explained, saying that the same principle of discovery and seizure was extended and the courts have ruled on it and the department has issued internal circulars on it.
Under some circumstances, tax authorities have the same powers whether they are digital or otherwise to reach the documents of non-conducting evaluators. Panda said, “To do yoga, words in the new draft bill are honestly re -introduced the Act as it is amended by court decisions and internal circulars. One thing is very clear, no policy change,” Panda said.
The committee interacted with several stakeholders, including large and small and medium enterprises, industry associations, not only the big people, but also regional -journalists and chartered accountants with large and small firms and individual physicians, representing taxpayers’ associations and non -profit organizations.
Panda said, “I will insist on the point that it is a big step for simplification, clarity, ease of compliance, low litigation, and it will make many more ongoing reforms possible in the coming years.”
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