New Delhi, Jan 3 (Agency) Providing its inputs to Finance Ministry on review of Income Tax Act, the Institute of Chartered Accountants of India (ICAI) has recommended to introduce special tax regime for firms/LLPs, simplification of the registration and taxation regime of charitable trusts and dispense with the need to exercise option for special tax regimes through separate forms. On mitigating litigation, the ICAI has proposed alignment of TDS/TCS rates with the objective of serving as an audit trail, limiting the adjustments under section 143(1)(a) to arithmetical errors and prima facie incorrect claims, and periodic review of disposal of cases by Assessing Officer among others.
“ICAI’s recommendations encompass suggestions to simplify tax laws not only in the form, but also in substance. Simplification is required not only in the language of law to reduce the scope for multiple interpretations, but also in the structure and framework of the Act, the computation mechanism and the procedures. The comprehensive review process should result in a simple, fair and equitable income-tax law,” said Ranjeet Kumar Agarwal, President, ICAI. The ICAI has also submitted its pre-Budget Memorandum 2025 to the Finance Ministry advocating prudent tax reforms aimed at fostering economic growth and encouraging environmental sustainability. It has also suggested provision of tax benefits for promoting climate change mitigation strategies, which will not only contribute to India’s climate change goals but also drive economic growth by promoting sustainable business practices is a suggestion in this direction.