The government is working on an administrative mechanism to solve the tax problems inherited from the new companies: the head of CBDT
New Delhi, July 9 () New companies should not have any tax-related concerns and the government is implementing an administrative mechanism to solve the inherited problems, CBDT chief P C Mody said on Tuesday.
The president of the Central Board of Direct Taxes (CBDT, for its acronym in English) also said that the Budget has also increased the threshold to start processing, which has increased to Rs 10,000 from Rs 3,000 to facilitate compliance of taxpayers .
The ease of tax compliance would be an integral part of the ease of life ... The ease of compliance also refers to the threshold for processing. As you will notice, that limit has also risen from Rs 3,000 to Rs 10,000. And, the composition The guidelines have become liberal, Mody said.
In the 2019-20 Budget, Finance Minister Nirmala Sitharaman proposed simplifying the tax law to reduce the real difficulties that are being caused to taxpayers, which includes raising the tax threshold to initiate prosecution for failing to file returns and exempting the appropriate classes of persons of the anti-abuse provisions of Section 50CA and Section 56 of the Income Tax Act.
In this budget, there is a clear direction to tone the tax administration and ensure that taxpayers get the right environment to fulfill their obligations honestly and correctly, said Mody.
The Budget also proposed a series of measures to solve the problems faced by start-up companies with respect to their initial financing, called angel tax, its certification and verification of investors.
Mody said that in the future, there should be no cause for friction or worry in the minds of new companies. Legacy problems are treated separately. Those are more administrative in nature, we are already working on that. As noted earlier in the budget discourse, an administrative mechanism is being established to resolve legacy problems. Said address to a Ficci event. JD HRS