Budget 2021 underlines principle of providing stable tax regime, says CBDT Chairman Pramod Mody

By not changing or attempting to tweak any of the tax rates or slabs in any manner, the Union Budget 2021 has tried to underline the principle of providing a stable tax regime, said  Pramod Chandra Mody, Chairman, Central Board of Direct Taxes (CBDT), Ministry of Finance.  

Speaking at an event organised by the Confederation of Indian Industry (CII), Mody said: "Wherever we have tried to amend certain provisions, the idea has been to clarify the issues once and for all so that the litigation is minimised."

He further noted that the government has focused on resolving disputes.

"Just to give a brief background, initially we tried to raise the monetary limits for which the department will prefer an appeal to be heard. But we followed it up with certain beneficial circulars where on certain issues we tried to give clarity. We brought the Vivad Se Vishwas scheme which is a great success. We have resolved a substantial number of disputes," Mody noted.

"So continuing with that series of measures which we have already taken, I think the provision relating to dispute resolution committee or board for advanced tax ruling or the faceless IT all put together, they weave a common pattern of trying to bring about some sort of a resolution to disputes in a more transparent, effective and efficient manner," he observed. 

The CBDT chairman also said that another priority area in the Budget has been to bring in tax certainty and overall clarity in provisions as they agitate both the taxpayers and the CBDT.

"We have revamped the 26ERS statement which now would be nomenclatured as 26 AIS which would, in turn, give information about the financial transaction which a particular holder undertakes during the financial year. "

Mody said the 26 AIS would not only serve as a checklist for a taxpayer in filing returns but would also enhance the tax base, bring in ease of compliance and rationalise the reopening of cases.

"What was a heavily litigated area, we have tried to rationalise it to the extent that it is no longer left to the discretion of the assessing officer, it would be more information-based attempt to reopen the cases," Mody added.