There are different report’s being circulated under the name F.O.R.C.E. (Fiscal Options & Response to Covid-19 Epidemic) which has been allegedly prepared by 50 IRS officers and they were asked to prepare a report by CBDT on revenue mobilisation and economic impetus to fight COVID-19.
A few suggestions are worth praising but main suggestion require reconsideration and we should urge govt at all level to not consider these suggestion at all:
1 Increase tax rate @40℅ to super rich i.e. those earning above 1 crore.
2 Reintroduction of weath tax.
3 Introduce covid cess.
4 Give up movement for deduction u/s 80c.
5 Reintroduction of inheritance tax.
6 Introduction of amnesty scheme for non disputed demand.
7 Increase threshold limit up to 10 crore for tax audit.
Some suggestion which can be applied are as follows:
1. Expenditure incurred by companies during such pandemic and claimed under CSR should also be allowed as deduction u/s 37 for FY 2020-21 only.
2. New tax saving scheme like COVID saving certificates (like NSC) u/s 80C.
3. New amnesty scheme for undisputed demand by waiving of interest u/s 220(2) as Vivad se vishwas scheme is for disputed demand.
4. Incentivizing compliance as against penalizing non compliance.
It is a 43 page report which talks about much more things than just tax it also talks about expenditure and other things. However CBDT has denied existence of any such report in their various tweets which are as under:
“(1/3)There is some report circulating on social media regarding suggestions by a few IRS officers on tackling Covid-19 situation. It is unequivocally stated that CBDT never asked IRS Association or these officers to prepare such a report.
(2/3)No permission was sought by the officers before going public with their personal views & suggestions, which is a violation of extant Conduct Rules. Necessary inquiry is being initiated in this matter.
(3/3)It is reiterated that the impugned report does not reflect the official views of CBDT/MInistry of Finance in any manner.”
You can read the tweet HERE.
However many people are of the opinion that
“why would IRS officers prepare report without being directed by CBDT.”
“Such denial is just because of backlash received from such report” and
“why are they tweeting it now after 24 hours”
To read the full report CLICK HERE.
This article is just for information purpose it is always advisable to hire a professional for practical execution. If you need assistance you can ask a question to our expert and get the answer within an hour or post a comment about your views on the post and also subscribe to our newsletter for latest weekly updates.