Central Board of Direct Taxes (CBDT) chief Sushil Chandra said that the industries should take more initiative in paying tax more than the salaried class and help to build a tax compliant society and the chief also warned them to desist from misusing provisions of laws to evade taxes.
During the budget speech the Union Minister for Finance and Corporate Affairs Minister Mr. Arun Jaitley has proposed a reduced rate of 25% to companies that have reported turnover up to Rs 250 crores in financial year 2016-17. This will benefit the entire class of Micro, Small and Medium Enterprises which accounts for almost 99% of companies filing their tax returns.
Further the CBDT Chief Mr. Chandra said while addressing the CII post budget meet that “I want to drive home that point very clearly before the industry that you should be more tax compliant, automatically rates will come down. We are ready to move with you for making the society tax compliant. Industry has got much more responsibility than salary earning person.”
In the Union budget 2018-2019, the government reduced the corporate tax rate in a phased manner and lowered the corporate income tax rate for 99% of the companies which will leave them with higher investible surplus which in turn will create more jobs.
In the Union Budget 2017, he had announced the reduction of corporate tax rate to 25% for companies whose turnover was less than Rs.50 crores in financial year 2015-16. This had benefitted 96% of the total companies filing tax returns. The Finance Minister also said that after this measure, out of about 7 lakh companies filing returns, about 7,000 companies which file returns of income and whose turnover is above Rs.250 crores will remain in 30% slab.
While concluding the session Mr. Sushil Chandra said that “When the law is so simple, when rates are reasonable, which the industry generally asks from us … Now I’m asking from you (industry) that at least be tax compliant.”
