Rewriting IT Laws
As per reports, the Income Tax Act needs to be re-written for simplification and better compliance. The irony with the government is that in order to simplify taxation system, it is making it more complicated, perhaps keeping in view the loss of revenue or thinking that all citizens resort to dishonest means as regard to taxes. The fact is that the total tax burden on a citizen is perhaps the highest in India. And in turn, citizens do not get required or expected services from the government.
An attempt was being made by the previous government to simplify Income Tax by introduction of Direct Tax Code, so that the common income tax payers can easily understand it and comply with it. However, the Direct Tax Code 2013 Bill had 325 clauses, 21 chapters and 23 Schedules. Can a common citizen make anything out of this voluminous code-sections and schedules? There should not be more than 50 to 60 sections.
With the passage of time, more income tax rules, clarifications, circulars, notifications etc. have come up, besides Court's decisions on DTC. The services of tax practitioners and chartered accountants will always be needed by the taxpayers till there is income tax in India! For easy compliance of income tax, the forms must also be simplified like One Page Saral for all the taxpayers. If GST is generating good amount of tax, then why not abolish income tax in toto?