Budget 2016: 'Govt studying Shome's tax reform proposals'

FM Arun Jaitley hints Centre will also look into Easwar panel proposals on TDS

Finance Minister Arun Jaitley on Monday said his government is in advanced stages of studying the Shome Committee recommendations on easing tax administration. He also said the government will look into Easwar panel recommendations on tax deducted at source.

At the Income Tax Appellate Tribunal (ITAT) event in New Delhi, Jaitley said the government will simplify tax laws to reduce litigation and ensure that the harassment to assessee will significantly reduce. 

Parthasarathi Shome, a former adviser to the finance minister, headed Tax Administration Refom Commission (TARC) and submitted four reports to the government.

R V Easwar  chairs a committee to look into easing various provisions of the Income Tax Act. The panel has submitted first draft report and suggested reducing tax deducted at source rate on interest rates, post office deposits etc. It  also recommended raising threshold limits  for these taxes to kick in. 

 

Jaitley said the Easwar panel recommendations will be looked at for cleaning up tax regime. "There was need for clear and neater tax regime," he said.