A meeting of the Central Direct Taxes Advisory Committee (CDTAC) is likely to held soon to solve the procedural and administrative difficulties faced by income tax assesses. Finance minister, who heads the CDTAC, is expected to clear the way on the tax administration reform commission, which is proposed to be set up by the government. Further, heads of the three industry chambers - ASSOCHAM, CII and FICCI are expected to submit their views to the panel, who are also the members of the committee.
Currently, income tax assesses are not satisfied with the effectiveness of the present tax system and would prefer faster processing of refunds, well defined guidelines for stay and recovery matters and higher interest on delayed refunds. The panel will discuss the two persistent issues- tax recovery and litigation arising out of the procedures adopted by the Income-Tax Department.
Finance Minister P Chidambaram, in his Budget speech, has stressed the need for efficient tax system in the country and said that an emerging economy must have a tax system that reflects best global practices.
