Whalesbook
Unified Tax Filing
The push for a single, uniform Income Tax Return (ITR) form is a central demand, aiming to demystify the current system comprising seven distinct forms. Taxpayers argue that the existing multiplicity creates confusion, increases the likelihood of errors, and forces individuals to constantly ascertain the correct form based on varying income sources year-on-year.
Clarity on New Tax Act
With the New Income-tax Act set to become applicable from April 1, 2026, stakeholders advocate for a comprehensive Master Circular. This would consolidate decades of circulars and notifications from the old Act, referencing corresponding sections in the new law and omitting outdated provisions. Such a circular, updated annually, would provide much-needed clarity and streamline compliance.
TDS Framework Revamp
Significant reforms are sought for the Tax Deduction at Source (TDS) framework, which currently demands considerable compliance effort. Suggestions include studies to identify high-collection TDS sections, potential deletion or merger of low-contributing ones, and prescription of only two to three uniform rates. Removing the mandatory TDS certificate issuance, given data availability in Form 26AS and the Annual Information Statement (AIS), alongside a TDS Ledger mechanism, could substantially reduce litigation and compliance burdens.
Green Tax Incentives
As Indian cities grapple with severe air pollution, taxpayers propose leveraging direct tax law for environmental solutions. This includes carving out an exception for special tax incentives for Electric Vehicle (EV) purchases within the new individual tax regime, despite the general trend towards fewer deductions. Furthermore, encouraging businesses to earmark a proportion of CSR spending for pollution control research and government-approved schemes, with this spend being tax-deductible, is also on the wishlist. These measures are seen as complementary to broader government efforts to address the health crisis.