India Inc pushes for simpler tax laws to reduce compliance burden: Survey
94% of Indian industry leaders are calling for streamlined tax laws to reduce compliance burdens, enhance tax certainty, and foster economic growth, according to a new survey by Deloitte India. The findings come as the Finance Ministry reviews the country’s Income Tax Act, with a focus on simplifying the complex tax framework and improving the dispute resolution process.
The survey, which gathered insights from over 320 business leaders, reveals that over 70% of small businesses face difficulties with the current tax reporting complexities, highlighting the need for simpler processes. In particular, 43% of respondents pointed to the necessity of better mechanisms for resolving tax disputes.
Dinesh Kanabar, CEO of Dhruva Advisors, has noted the ambiguities in current tax regulations, especially in mergers and acquisitions, which often lead to unintended interpretations and disputes.
60% view tech-driven reforms in ITR filing as 'highly successful'
Among the most praised recent reforms were initiatives like the Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) tools, which have simplified the tax return filing process. Nearly 61% of respondents viewed these tech-driven reforms as highly successful in promoting higher voluntary compliance, with the number of tax returns filed rising over the past two years.
