IT-Act Simplification Committee Report Part 1 – A step towards Indian tax law renaissance?
Within an impressive time span of just two and a half months since the constitution of the IT Act Simplification Committee (chaired by Retd. Justice R. V. Easwar), the Committee has released Part 1 of its Report containing draft proposals for consideration of various stakeholders. The draft proposals encompass suggestions in the form of 27 amendments to the IT Act and 8 reforms through administrative instructions. The first draft report focuses on pressing issues and recommends, inter alia, the deferment of Income Computation and Disclosure Standards (‘ICDS’), addresses the vexed issue of Sec 14A disallowance and also rationalizes Sec 206AA provisions.
Do the amendments and reforms endorsed in the first draft Report achieve the aim of simplification of the IT Act provisions? What are the challenges that we could witness in the implementation of these proposals? What are the other pressing issues in the IT Act provisions that need to be simplified?