Can the Income-Tax Act be made simpler?
The Finance Ministry has taken the initiative to modify the tax law by constituting an expert group. There is scope for simplification if the social objectives and other policies are not built into the taxation system, by providing various exemptions and, thus, making it complicated. A simpler law can be achieved by taking care of equity on grounds of earning capacity. Rationalising of tax policy will facilitate greater voluntary compliance. If tax rates are reasonable and policy is rationale, there is no need for concessions and deductions which pave way for complication and litigation. In our country there is potential for at least 10 per cent of the population, that is, 100 million, as against the present 35 million, to be paying taxes and we will work with the Finance Ministry to achieve this. In terms of the Right to Information Act, 2005, can people look forward to knowing more about the Institute, in areas such as expenditure and examinations? The ICAI had no reservation even in
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