I-T returns should also include wealth tax returns

I-T returns should also include wealth tax returns

I-T returns should also include wealth tax return so that the taxpayer need not separately file wealth tax returns. These returns should also be processed together in the CPC at Bengaluru.

The disclosures in the return should include a brief mention of the issues on which there has been an on-going litigation between the tax administration and the taxpayer, and should indicate the factual and legal position adopted while computing taxable income for a year. This is to protect taxpayers from allegation of non-disclosure, suppression, escapement of income, etc., which often results in the initiation of penal provisions.

Taxpayers should give information on their compliance experience at the time of filing returns; this information should be used to improve taxpayer service bringing in customer focus.

Territorial jurisdiction should be dispensed with and industry-based assessment should be introduced in line with recommendations in Chapter III of this report.

The CBEC should set up centralized processing units in line with the CPC, Bengaluru,
and CPC-TDS at Ghaziabad for processing central excise and service tax returns.
There should be a common return for excise and service tax.

The CBEC should set up an e-portal and all invoices should be issued from that portal. This portal should be linked and made compatible with SAP ERP systems, which a majority of the companies use for their own invoicing. E-invoice would simplify credit/refund procedures, which would become automatic.

Source- First Report of the Tax Administration Reform Commission (TARC)

Leave a Reply

Your email address will not be published. Required fields are marked *

three × five =