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News INCOME TAX

  • Mar 13, 2020
  • Standing Committee on Finance submits report on personal tax deductions

    Exemptions and deductions in personal income tax, “should be continually revisited, rationalised and eventually scrapped in tandem with moderation of tax rates,” the Standing Committee on Finance recommended in its report on demand for grants. The report backed the government’s move of gradually doing away with deductions, exemptions and complicated tax structure for taxpayers.

    “However, terminal benefits available to retiring employees should not be taxed with a view to ensuring social security to senior citizens,” the committee, headed by Jayant Sinha, added in its report presented in Rajya Sabha, Thursday.

    The Committee further flagged that cases of fraudulent claims of input tax credit under goods and services tax (GST) based on fake invoices had more than doubled, from 2211 in FY 2018-19, to 5986 in FY 2019-20, even as the Central Board of Indirect Taxes and Customs (CBIC) was using analytical tools and systems generated intelligence to curb tax evasion.

    The Committee added that the department of revenue extends the monthly due date for filing Goods and Services Tax (GST) returns to 25th of every month, and has asked the government to sort out “all the festering issues pertaining to GST at the earliest.”