DTC Review: Compliance To Improve With Lower Rates, Says Akhilesh Ranjan
Tax compliance is the focus of direct tax code review, says task force head Akhilesh Ranjan.
Lower rates improve compliance and that’s the focus of the report by the task force set up to review direct tax laws, according to its head.
“The taxpayer must believe that rate structure is reasonable, that perception must be there is taxpayers’ mind,” Akhilesh Ranjan, chairman of the task force, told reporters in New Delhi. “They must not feel it is a burden or an extortionary tax.”
The government has already said there is a need for reduction in the corporate tax, he said. “We’re moving towards lower rates, and that will happen sooner than later.”
The task force submitted its report to Finance Minister Nirmala Sitharaman on Aug. 19 but it hasn’t been made public yet.
Ranjan said there are certain complexities in the corporate tax system, and if these are removed, compliance would increase leading to better revenue growth.
The task force tried to remove these complexities without disrupting the established concepts, he said. The report focuses on ease of filing procedures, modernising systems, improving litigation management, and making direct tax more comprehensive, Ranjan said.