• Notification Date: 30-11-2022
• Notification No: N/A

Time to reform Income tax and GST in Budget 2023: Revenue Secretary Tarun Bajaj

Revenue Secretary Tarun Bajaj stated that there is a need for reforming both direct and indirect taxes some of the emerging issues in income tax (I-T) and Goods and Services Tax (GST). Bajaj superannuated on November 30 and he said that it is critical to rationalise rates under the Goods and Services Tax (GST). It is also necessary to reduce the number of slabs and reconsider the exemptions. There are also some other recurring issues like online gaming, and the setting up of tribunals which also require resolution.  

The Government should also consider including gas and ATF (aviation turbine fuel) into GST, he added. There are about two, or three issues related to the direct taxes. One of them is to fix the capital gains and another is the personal income tax. The third issue is to rewrite the code to simplify the tax regime and reduce litigation. The personal tax regimes need to be rewritten in order to make the new regime better than the old one. 

"Under the new regime, the exemption limit is ₹2.5 lakh while in the old scheme you don't have to pay any taxes up to ₹7.5 lakh. Most people fall within this income bracket and so they have no incentive to come to the new tax regime," said Bajaj. 

Bajaj further added that the government is simplifying the tax structure but there are more reforms that are required to be made. For simplifying the process, there is only one income-tax return form provided at present instead of six. For further reforms in the tax structure, faceless system in direct tax and customs is being introduced.