The Chamber welcomes the Government’s initiative to revamp the existing Income Tax law and bring rationalization and simplification in the legislation. This is the right step towards ushering in a modern tax law that is in line with the emerging economic environment and aligned to the international developments. 

"From a cursory look at the proposals, the Chamber feels that the move to bring moderation in tax rates, including pegging the corporate tax rate at 25% and enhancing the limit for deduction for savings to Rs 3 lakhs is a welcome move.    However, the finer print would need to be studied to understand the rationale and implications of the proposals. The phasing out of incentives must be gradual, and backed by a lower tax burden on the tax payers." added Mr Satish Bagrodia, President, PHD Chamber.

"The Code has proposed new concepts such as treating charitable trusts as non profit organizations, EET system of taxation for all savings etc. These would need a deeper study.  It is hoped that the new code would help provide stability, simplicity and flexibility in the tax laws and greater efficiency and accountability to the tax administration." added Mr. Bagrodia.