Latest news with #MonikaYadav
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Business Standard
4 days ago
- Business
- Business Standard
No retrospective change in I-T Bill, only simplification: Baijayant Panda
The old law had become so complicated that even experts couldn't give the clear answer, says Panda premium Monika Yadav New Delhi Listen to This Article The new Income-Tax Bill does not override the intent of the Income Tax Act, 1961, but simplifies its language and structure, says Lok Sabha Member Baijayant Panda, who chaired the 31-member select committee to review its draft. In an interview with Monika Yadav, Panda says with the rising number of filings, resources need to be scaled up. Edited excerpts: Do you believe the Bill has been simplified enough to significantly reduce tax disputes and litigation? This is the first step towards simplification. The law has become complicated. It is 64 years old and has undergone more than 4,000 amendments, resulting
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Business Standard
21-07-2025
- Business
- Business Standard
Income Tax Bill: Select panel proposes wider transfer-pricing net
Companies wielding substantive influence with other firms may face more scrutiny premium Monika Yadav New Delhi Listen to This Article In a move that could have far-reaching repercussions on the corporate landscape, the proposed new Income Tax (I-T) law could bring inter-corporate transactions under transfer pricing scrutiny if the tax department considers one of the firms to have a substantive influence on another even if thresholds pertaining to shareholding or board control are not triggered. This is a key recommendation made by the Lok Sabha's select committee in its report on the draft Income Tax Bill, 2025, tabled in Parliament on Monday.
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Business Standard
17-07-2025
- Business
- Business Standard
Claiming false deductions? I-T dept steps up scrutiny, warns of penalty
The warnings come as the government has given taxpayers more time to file their returns - the deadline is now September 15. But experts say this extra time comes with stricter checks Monika Yadav New Delhi Listen to This Article Tax experts are cautioning taxpayers against fraudulently claiming large deductions — such as inflated donations to charities, NGOs, or political parties, or exaggerated house rent allowance (HRA) claims — as the income tax (I-T) department has tightened scrutiny of such practices. In many such cases, the department has levied a penalty of 200 per cent of the unpaid tax, making it a costly mistake for taxpayers, say experts. 'This year, taxpayers should be very careful,' said CA Chetan Daga, founder of AdvantEdge Consulting.
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Business Standard
08-07-2025
- Business
- Business Standard
CBIC may free up importers' IGST credits to address payment issues
Short payments of IGST on imports are usually discovered during internal audits or regulatory checks, and tend to arise due to valuation differences, classification errors, or other discrepancie Monika Yadav New Delhi Listen to This Article In a bid to facilitate importers who may have underpaid Integrated Goods and Services Tax (IGST) dues, the Central Board of Indirect Taxes and Customs (CBIC) is likely to issue a standard operating procedure (SOP) to enable them to claim input tax credit (ITC) on IGST payments made to rectify shortfalls flagged after Customs clearance. This new protocol for GST field formations could potentially unlock several hundreds of crores worth of input tax credits of importers that are currently stuck, straining their working capital flows, two government officials aware of the development told Business Standard.
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Business Standard
30-06-2025
- Business
- Business Standard
PwC bats for 3-tier GST rate structure to cut disputes, simplify tax regime
Marking eight years of GST, PwC recommends streamlining tax slabs, removing compensation cess, and aligning India's tax regime with OECD neutrality principles Monika Yadav New Delhi A shift from the current four-tier Goods and Services Tax (GST) rate structure to a three-tier system is essential to reduce interpretational disputes, improve tax certainty, and simplify compliance, according to PwC India's latest report, Eight Years of GST: A Time to Reflect, A Time to Reform. 'A comprehensive review of GST rate slabs is required to minimise the disparity between the GST rate on inputs as against that on output, especially for sectors such as electric vehicles, aviation and e-commerce, which face credit accumulations on account of the inverted tax structure,' the report said. Cess regime creates working capital blockages PwC also highlighted the complexities created by the compensation cess, which was initially introduced for five years to offset states' revenue losses from GST implementation, and has since been extended until March 2026. The cess, levied on products such as tobacco, automobiles, coal and aerated beverages, has led to working capital blockages for businesses whose inputs attract the cess but whose outputs do not—leaving tax credits non-recoverable. 'With strong GST collections addressing fiscal concerns, the reasons for the introduction of the cess in 2017 no longer apply,' the report notes, adding that the levy could either be scrapped entirely or merged into the GST rate structure to simplify compliance and reduce business costs. Need for global alignment on tax neutrality The report also underscores the need to align India's GST system with global principles of tax neutrality, as advocated by the Organisation for Economic Co-operation and Development (OECD). Under these principles, businesses should have an unfettered right to claim input tax credits so that the tax burden ultimately falls on the final consumer rather than on business intermediaries. Robust collections, but reform at a critical juncture India's GST collections have demonstrated strong growth, with monthly average revenues rising from ₹0.9 lakh crore in 2017–18 to ₹1.84 lakh crore in 2024–25. In April 2025 alone, GST collections hit a record ₹2.37 lakh crore, reflecting robust domestic consumption and higher imports. However, PwC cautioned that the GST regime is at a 'critical juncture.' Beyond rate rationalisation and tax base expansion, the report recommends technology-driven reforms, trust-based audits, and clearer rules for emerging sectors such as e-commerce, electric vehicles, cryptocurrencies and AI-powered services. Appellate tribunal helpful, but wider reforms needed While the operationalisation of the GST Appellate Tribunal (GSTAT) is expected to ease dispute resolution, PwC stressed that broader legislative and administrative reforms are necessary to maintain India's momentum as a competitive global economy. As GST approaches its tenth anniversary in 2027, the report concludes that the next phase of reforms will be critical to ensuring that India's tax system remains robust, business-friendly, and aligned with global best practices.
