The Economic Survey 2023, tabled before the parliament by the Financial Minister Nirmala Sitharaman reviews the performance of the Indian economy in the last year.
Direct taxes, which broadly constitute half of the Gross Tax Revenue have registered a YoY growth of 26 per cent from April to November 2022, enabled by corporate and personal income tax growth.
It was visible that the Growth in Centre’s direct taxes is higher than their corresponding longer-term averages during the period April to November. The survey also lists the measures taken, in the direct tax regime to ensure ease of compliance and better voluntary disclosure of income, by the Central Board of Direct Taxes ( CBDT ) along with incentives and steps are taken to reduce tax litigation.
Further, a new provision to affect business reorganization had been made under the Income Tax Act, of 1961, requiring the successor entity to file a modified return within six months of the order of the reorganization being passed by the Competent Authority.
In promoting the ease of compliance for taxpayers, the Central Government and the Board of Direct Taxes (CBDT), various initiatives and measures such as the introduction of the new scheme of updated returns which facilitates the taxpayer to voluntarily update his return anytime within two years from the end of the relevant assessment year by paying an additional tax.
Dispute Resolution Committee constitutes a new measure to reduce litigation and give impetus to dispute resolution for small taxpayers. A taxpayer having taxable income up to ₹50 lahks and disputed income up to ₹10 lacks shall be eligible to approach the Committee.
The Survey report was of opinion that the direct taxes propelling the growth of revenue and it focuses more on the measures to improvise the mechanism of direct taxing.
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