TAX REFORMS IN INDIA
Recently, India has surpassed France and has become 6th largest economy in the world.
Tax reforms form the crux of the economic development in India. A number of tax reforms have simplified the filing of taxes.
Those reforms are as follows
- Tax Information Network (TIN) is an initiative by Income Tax Department of India (ITD) for the modernization of the current system for collection, processing, monitoring and accounting of direct taxes using information technology.
- Online Tax Accounting System (OLTAS) to ensure better governance
- E-TDS/E-TCS Payments for organizations or individuals to third parties attract TDS or tax deducted at source.
- “E-Sahyog” aims to provide an online mechanism to resolve mismatches in Income-tax returns
- E Nivaran Mobile app to easy access and IT return
- Time frame and committed grievance redressal mechanism.
- Tax refunds within 10 working days and an initiative to verify Income Tax Return (ITR) by Aadhaar or bank database has been taken.
- MODVAT was introduced to replace the central excise duty
- The GST replaces 15 existing state and federal taxes and could help India increase its economic growth upto two percentage points
- GST Council to decide and monitor upon any matter related to GST
- Anti-Profiteering Rules for implementation of GST at broader level.
IMPACT OF REFORMS
- India has shown a tremendous improvement in Ease of Doing Business Report by World Bank.
- Moody has upgraded the rating of India's economy.