By Express News Service
NEW DELHI: Revenue secretary Tarun Bajaj has questioned the rationale for under 10 per cent tax on long-term capital positive aspects.
“As much as Rs 95,000 crore was made in long-term capital gains tax in 2019-20. Out of which 92 per cent was made by people with over Rs 15 lakh annual income and 80 per cent by those with more than Rs 50 lakh annual. How can we justify 10 per cent tax on long-term capital gains, when the whole world is moving towards 20-30 per cent tax,” stated Bajaj in an occasion in New Delhi on Saturday.
He additionally reiterated the necessity for brand new tax regulation to make the foundations easy. “The first Income Tax Act came in the 1860s, the second came in the early 1900s and the third Income Tax Act came in 1961. Perhaps this is the right time to write a new tax law,” the income secretary stated in an occasion organised by the Tax India Online (TIOL) Knowledge Foundation.
He stated that some efforts have been made in current historical past (to overtake the tax guidelines), however these efforts didn’t bear fruits. He stated this time honest efforts must be made to rewrite the tax legal guidelines.
Talking in regards to the advanced tax guidelines within the nation, Bajaj stated if tax legal guidelines within the nation are advanced it isn’t fully the fault of bureaucrats and the policymakers; it is usually the fault of varied lobbies who ask for tax exemptions from time to time. “The government has to agree to some of these demands,” he reiterated.
The income secretary referred to as for assist from tax professionals and taxpayers to take away varied exemptions provided to pick teams/companies to make the tax legal guidelines easier.
Talking about totally different guidelines for capital positive aspects tax for various asset courses, Bajaj stated there is no such thing as a logic for having totally different time frames and tax charges for various belongings.
He rued the truth that the business and tax professionals, as a substitute of asking for the elimination of various exemptions, they give you the demand for brand new exemptions.
Citing the instance of the brand new revenue tax regime, which has decrease tax slabs and no exemptions, the income secretary stated except the previous tax regime is disincentivised, the brand new tax regime wouldn’t take over.
