Via Specific Information Carrier
NEW DELHI: Earnings secretary Tarun Bajaj has wondered the explanation for handiest 10 in step with cent tax on long-term capital positive factors.
“Up to Rs 95,000 crore was once made in long-term capital positive factors tax in 2019-20. Out of which 92 in step with cent was once made by means of folks with over Rs 15 lakh annual source of revenue and 80 in step with cent by means of the ones with greater than Rs 50 lakh annual. How are we able to justify 10 in step with cent tax on long-term capital positive factors, when the entire international is shifting in opposition to 20-30 in step with cent tax,” stated Bajaj in an tournament in New Delhi on Saturday.
He additionally reiterated the desire for brand spanking new tax regulation to make the foundations easy. “The primary Source of revenue Tax Act got here within the 1860s, the second one got here within the early 1900s and the 3rd Source of revenue Tax Act got here in 1961. Most likely that is the fitting time to jot down a brand new tax regulation,” the earnings secretary stated in an tournament organised by means of the Tax India On-line (TIOL) Wisdom Basis.
He stated that some efforts have been made in fresh historical past (to overtake the tax laws), however the ones efforts didn’t undergo end result. He stated this time honest efforts must be made to rewrite the tax rules.
Speaking concerning the complicated tax laws within the nation, Bajaj stated if tax rules within the nation are complicated it isn’t solely the fault of bureaucrats and the policymakers; it’s also the fault of more than a few lobbies who ask for tax exemptions from time to time. “The federal government has to comply with a few of these calls for,” he reiterated.
The earnings secretary referred to as for give a boost to from tax pros and taxpayers to take away more than a few exemptions presented to make a choice teams/companies to make the tax rules more practical.
Speaking about other laws for capital positive factors tax for various asset categories, Bajaj stated there is not any common sense for having other time frames and tax charges for various property.
He rued the truth that the trade and tax pros, as an alternative of requesting the removing of various exemptions, they get a hold of the call for for brand spanking new exemptions.
Bringing up the instance of the brand new source of revenue tax regime, which has decrease tax slabs and no exemptions, the earnings secretary stated until the outdated tax regime is disincentivised, the brand new tax regime would no longer take over.