Kolkata: The Institute of Chartered Accountants of India (ICAI) has sought about 14 tax and accounting reforms in the upcoming Union Budget. The suggestions essentially aim at making laws simple, fair, transparent, less litigative and user friendly, ICAI president Nihar N Jambusaria said.
There are about 14 suggestions from our end submitted to the Central Board of Indirect Taxes & Customs (CBIC) for consideration, he said on the sidelines of an international conference of CA students.
The suggestions include permitting carryback of losses and introducing suitable legislative amendments for its application. It is relevant for hospitality, passenger transport and some other sectors.
Regarding depreciation on slump sale, the ICAI suggested amendment of a provision of the Income Tax Act to clarify the legal position as to whether depreciation can be claimed on the basis of the proportionate number of days by the transferer and the transferee company.
It also proposed that Section 12 of the Act be amended to clarify that voluntary contributions shall include one in kind and the value of the property so received by a trust or institution shall be the fair market value as on date of receipt of such contribution.
The definition of demerger should include the corporate divestiture in form of spin-off under which a parent company transfers its shareholding in a subsidiary to its shareholders, the ICAI suggested.