Revenue collection from GST, Income Tax encouraging in the first quarter, a sign of recovery: Finance Secretary
Finance Secretary The data indicated that business activities started in every possible sector.
New Delhi. Revenue collection from taxes in the first quarter of the current financial year is encouraging and indicates that the economy is making a comeback faster than was expected when the lockdown was imposed. Finance and Revenue Secretary Ajay Bhushan Pandey made this remark on Thursday. He said that the revenue department wants to ensure self-compliance among taxpayers by providing data of all financial transactions through Form 26AS while filing income tax returns. He said that about 70 percent of the Goods and Services Tax (GST) amounting to Rs.91 thousand crore deposited in June has been recovered from the transactions done in May.
“For June, as per the current trends, we have some definite indication as to how many people have paid so far, as well as e-way bills, movement of trucks, all these things,” he said at an event organized by industry body FICCI. There are encouraging signs that the economy is returning sooner than what was being projected after the lockdown began in March. About 80 percent of the same period of the year.
“These two figures ‘GST and Income Tax’ are encouraging and also give us some hope that businesses are starting wherever possible. But there are some sectors like hospitality, education, tourism, which are facing difficulty.” There are additional details like purchase of property during the financial year. It ensures voluntary compliance and simplifies e-filing of IT returns. Pandey said that if a person sees all his/her transactions at one place, it makes return filing very easy and helps honest taxpayers. It also sends a message to those individuals who are on the verge of violating compliance and also tries to bring them on the right side of the law. He said, “What we want to promote is voluntary compliance rather than notices being sent to anyone.” With regard to digital lending by banks, Pandey said that if the tax-paying profile of the loan applicant is is made available to the lenders, it will be easier for lenders to assess how much loan can be given. “We have all this information, this information can be shared in a secure manner. are working on. We held meetings with various concerned parties, and we got many suggestions. We are working on them.”
Budget 2020: Former Finance Secretary Garg advocates four-rate income tax structure without cess, surcharge
Amid rising flurry over changes in income tax slabs, former Finance Secretary Subhash Chandra Garg on Sunday advocated a four-rate personal income tax structure without cess or surcharge.
Amid rising flurry over changes in income tax slabs, former Finance Secretary Subhash Chandra Garg on Sunday advocated a four-rate personal income tax structure without cess or surcharge. The demand for reduction in personal income tax rates has started gaining momentum after the Finance Ministry made a huge cut in company tax in September. The distortion in personal income tax has increased due to surcharges and cesses.
“The company tax structure has been rationalized and made competitive during the current financial year,” Garg said in the blog. No further action is expected in this regard. However, some major tax reforms in the taxation structure of personal income tax need to be carried forward. He said that there are about eight slabs in respect of income tax with the highest tax rate exceeding 40 per cent.
Emphasizing on reforming the income tax structure, Garg said,
“There should be no tax on taxable income up to Rs 5 lakh per annum. Income tax should be at the rate of 5 per cent on income between Rs 5 to 10 lakh, 15 per cent on Rs 10 to 25 lakh, 25 per cent on annual income between Rs 25 and 50 lakh and 35 per cent on income above Rs 50 lakh. Such a personal income tax structure would be a very simple and reasonable structure.
There should be no cess and surcharge in such a tax structure, he added. Such a tax structure would be welcome among taxpayers.
Garg said that this income tax structure will also be welcomed by the states and their grievances will also be redressed. This will not affect the revenue receipt too much.
Garg has played an important role in preparing three budgets of the Modi government. He said that this is the right time to abolish Dividend Distribution Tax (DDT) by taking advantage of digital banking and record keeping.