Tax consultants find flaws in I-T Act amendment
Tax experts said the amendments made in I-T Act would cause serious complications for tax payers, such as no statement of confessions would be allowed to be recorded even if one wanted it. There is deeming provision in the law, but the latest amendment will overrule that facility, they said.india Updated: Mar 01, 2003 19:14 IST
Tax experts said on Saturday the amendments made in Income Tax Act would cause serious complications for the tax payers, such as no statement of confessions would be allowed to be recorded even if one wanted it.
There is deeming provision in the law as per Section 5 of I-T Act, but the latest amendment will overrule that facility, eminent tax consultant and senior Supreme Court advocate, N K Poddar said.
Poddar, who was addressing members of Merchants' Chamber of Commerce (MCC) at a symposium on Union Budget 2003-2004, said there was no protection in the new law for recording present income of an assessee which might create lot of complications.
Eminent financial analyst andAllahabad Bank director, Amitav Kothari said the education allowance allowed by the Finance Minister was not in addition to existing limits of Rs 70,000 under Section 88 and will not have any major impact on assessees.
Kothari said explanation on Section 30 and 31 of I-T Act might prove costly for several companies that were spending huge borrowed amount on expansion and modernisation as they would henceforth will not be allowed to treat these expenses as revenue Expenses and will not be able to set off interest payment outgo.
MCC president, Sunil Kanoria said across the board increase in service tax from five to eight per cent would seriously affect the common people, who would have to pay much higher costs for many essential services.