‘Budget proposals to widen tax base’

Source: The Hitavada      Date: 03 Feb 2018 09:50:17


Business Bureau,

Renowned Chartered Accountant Rajesh Loya while analysing the Union Budget for 2018-19 here at a VIA event on Friday praised Union Finance Minister for making provisions for widening tax base. He said that the Budget proposals and some of the recent initiatives of the Government would certainly increase the number of tax payers and thereby generate additional revenue for the exchequer.

Loya was analysing the Union Budget at the event organised by the VIA Taxation & Corporate Law Forum at VIA Hall.
Loya further said that the electronic assessment of tax returns would give relief to the tax payers. “It will save precious time of the tax payers besides the possibility of manipulation has been completely eliminated,” he said adding that one could expect greater levels of efficiency and transparency because of the proposal.

He said that the Government is making all out efforts to encourage the tax payers to file returns well within the time frame. “It seems that the Government is not in favour of those who delay filing of returns and thus stringent actions have been proposed in this direction,” he said.

Besides, Loya said that the Government has proposed to give major boost to rural economy that would ultimately improve flow of cash in the domestic markets. Expressing, his view on long-term capital gains (LTCG), Loya said it would discourage investors in coming days.

Loya spoke at length on many other technical points of the Union Budget presented by Union Finance Minister on February 1, 2018. He explained the meaning and spoke on implications of various changes proposed in the direct tax law on the Industry. Loya elaborated the many clauses of the finance bill on the direct taxes. He elaborated the tax implications on shares transactions in different situations as a result of proposed 10 per cent tax rate on the LTCG of shares transactions.

He wholeheartedly welcomed the move of reduction in corporate tax rate to 25 per cent from existing rate of 30 per cent. He also compared the amendments proposed in the Budget with the previous year’s Budget.
He also elaborated the provisions related to cash transactions and advised the participants to avoid cash dealing. “Government has been promoting cash less transactions and thus it is expected that the citizens should
positively respond to the call in the larger interest of the nation,” he added.

Later on during the question and answer session, CA O S Bagadia expressed his concern over the imposition of tax rate of 10 per cent on the long term capital gain on sale of shares 10 per cent. CA Ashok Chandak has appealed to the audience to give their feedback/suggestions. It will be considered for forwarding the post budget memorandum, he assured the gathering.

He also expressed his concern over the negative sentiments in the share market because of the imposition of LTCG tax. At the outset, CA Anil Parakh welcomed the speaker by offering the floral bouquet. CA Sachin Jajodiya conducted the proceeding whereas CA Naresh Jakhotia gave concluding remarks and vote of Thanks.
Prominently presence were CA Jethalal Rukhiyana, CA Satish Sarda, Shabbir Bohra, Atul Khemka, Hemal Kothari, M G Jawanjar, Rajesh Kabra, Govind Batra, Chandan Patel and others.