ICAI Submits Pre-Budget Memorandum Suggesting Changes in Direct and Indirect Tax Laws [Read Judgement]

ICAI - Pre-Budget Memorandum - ICAI Submits - Memorandum - Direct and Indirect Tax Laws - Suggesting Changes - Indirect Tax - Direct Tax - taxscan

The Institute of Chartered Accountants of India ( ICAI ) has submitted a pre-budget memorandum suggesting changes in the direct and indirect tax laws.

The Council of the Institute of Chartered Accountants of India considers it a privilege to submit this Pre-Budget Memorandum, 2023 on Direct Taxes and International Tax to the Government. The memorandum contains suggestions for the consideration of the Government while formulating the tax proposals for the year 2023-24.

The ICAI, in its memorandum to the Government has suggested that consequential amendments may be made in sections 54, 54B, 54D & 54F so as to enable the holding period of the new asset purchased to be reduced to 2 years from 3 years in case of land and/or building. Further, it was suggested to amend section 2(42A) further so as to include all immovable properties within its purview.

It is further suggested that section 10 of the Act be amended to provide that a domestic company whose shares are listed on a recognized stock exchange or its subsidiaries shall be granted exemption in respect of any income by way of dividend received from a domestic company which is part of the same group. The same exemption shall apply to any dividend received from an InVIT set up by the listed company or its subsidiaries as sponsor. This exemption should ensure that relief from cascading taxation is provided under MAT.

Regarding the provisions of section 139 for the reduction in time to file belated and revised income tax return forms, the ICAI suggested that the amendments in section 139(4)/(5) made via Finance Act 2021 may be omitted so that current timelines to file belated/revised return of income of one year from the end of AY may continue.

It is further suggested that the clause (aa) to Explanation 2 to section 139(1) be suitably amended so that due date to file ITR form for assessee who is required to furnish a report referred to in section 92E be extended to 31st December of the AY from 30th November of the AY in line with amendment in section 139(1) vide the Finance Act 2020.

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