Broader tax base would allow tweaking of tax rates: P C Mody, Chairman, CBDT

Mr P C Mody, Chairman, Central Board of Direct Taxes (CBDT), said that as the tax base gets broader, there is a chance of tweaking the tax rates as there is a large portion of unorganized sector which is outside the tax framework and they should be encouraged to become part of tax framework. Speaking at an 'Interactive Session on Union Budget 2020-21', organized by FICCI, Mr Mody said, "Once that happens, the accuracy of filing returns would also improve and if that increases the tax base then there would be a case in future to further lower the taxes."

CBDT Chairman added, "Government's primary onus is to move towards a simple, lean and straightforward tax structure and one that is easy to comply with." He said that the government wants to trust the taxpayers and is making an effort to move the tax administration in that direction. "The government is making all efforts to put in place a system that offers best and seamless services to the taxpayers," said Mr Mody.

He said that there is much greater unanimity in the government now towards building synergies between the taxpayer and tax administration. "With ease of compliance at the core of the entire approach we would want to make pre filled return forms available to the tax payers," added Mr Mody.

Speaking on the 'Vishwas se Vivad' scheme Mr Mody said, "An in-depth review of the issues related to litigation have been undertaken in order to minimize disputes. We have moved towards a faceless assessment system and hope to move towards a system of faceless appeals as well."

Highlighting the new income tax structure announced in the budget, Mr Mody said that the new structure will give an option to the taxpayer to choose and file the best suited tax filing structure. "This is an optional scheme and there is no compulsion to shift to new scheme and this option is available to you on year on year basis. I feel that the younger generation will find it very interesting to go in for the new regime," he said.

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