ICAI submits ‘Pre Budget Memorandum 2021 on Direct Taxes (including International Taxation)’ containing 211 suggestions to the Ministry of Finance, Govt. of India, for consideration in formulating the tax proposals of Budget 2021 for the financial year 2021-22.
Earlier, the ICAI had invited suggestions from stakeholders9, on issues/ concerns relating to Direct Taxes (including International Taxation) and Indirect Taxes (including GST, etc.) for inclusion in the Pre Budget Memorandum 2021.
ICAI suggestions basically revolve around improving tax administration/ collection/ compliances, reducing litigation, rationalization of the provisions of various tax laws, removal of procedural/ administrative difficulties, certain new initiatives, check tax avoidance, etc.
In the Pre Budget Memorandum 2021, the ICAI’s suggestions on Direct Taxes (including International Taxation) can be broadly categorized under the following heads:
i) Part A : Suggestions relating to the policy & provisions of Income-tax Act, 1961;
ii) Part B : Suggestions for improving Tax Administration and Citizen Services; and
iii) Part C : Suggestions pertaining to International Taxation.