INCOME TAX REFORMS IN INDIA- A Study on the Perceptions of Assessees and Tax Practitioners in Visakhapatnam City

Abstract

newline ABSTRACT newlineThis study covers the entire Income Tax Act except the provisions pertaining to newlineinternational taxation. It includes all the heads of income, Section 10 exemptions and newlineSection 80 deductions, income tax return and assessment, faceless e-procedures, newlineincome tax rates, new alternative tax regime, TDS and other provisions. The study aims newlineat identifying the reforms required in the existing provisions of the Income Tax law as newlinewell as evaluation of recent changes like new tax regime and faceless assessment newlineprocedures. The perceptions of income tax assessees and tax practitioners in the city of newlineVisakhapatnam have been collected. Separate questionnaires have been administered newlineto both these groups. The questionnaire circulated to assessees focussed more on return newlineof income while the questionnaire circulated to tax practitioners focussed more on newlinefaceless e-procedures, tax audit and administrative provisions and procedures. All the newlinecategories of assessees salaried employees, businessmen and professionals, newlinepartnership firms, companies and trusts have been covered in the sample. The newlinesecondary data collected from income tax department website and reports of newlineComptroller and Auditor General of India has also been analysed. newlineThe respondents opined that exemption and deductions should be increased by linking newlinethem to cost inflation index at defined regular intervals of time, instead of the existing newlineprocedure of hike at the will of the Government. There is also a need to reduce the newlinecomplexity in the income tax provisions and also make law uniform by amending some newlineprovisions to align them with related provisions. Tax practitioners welcomed all the newlinefaceless e-procedures except faceless prosecutions. There is a strong support in favour newlineof the new alternative tax regime introduced in 2019. The respondents opined that while newlinetax rates for companies is reasonable, there is a need to reduce the tax rate for other newlineentities. newlineIt is suggested that the income tax department should take steps to create more newlineawareness on F