By CA. Sunil Gabhawalla
President
Dear Members,
As I sit down to write this
communication, the Finance Minister has just concluded presenting the Interim
Budget. In an invigorating Interim Budget speech, for the first time by a
Chartered Accountant, the Finance Minister left no stone unturned in highlighting
the series of measures taken by the Government to overcome policy paralysis and
bring the Indian economy back on track.
While a bystander may get a perception that some of these recollections
amount to blowing one’s own trumpet, perhaps in these times of persistent
negativity and noise, some element of positive assertion helps build
confidence.
Departing
from established conventions, the Finance Minister also proposed certain
amendments in the tax laws. Interestingly, there was a departure not only from
convention but also from a traditional mindset. Essentially, the proposals do
not aim to merely provide incremental benefits but appear to suggest a
recalibration of tax laws and limits to accept ground level realities and
changing times. The doubling of the basic exemption limit for individuals from
Rs. 2.5 lakh to Rs. 5 lakh and the quadruplicating of the threshold limit for
TDS on interest on bank fixed deposits from Rs. 10,000 to Rs. 40,000 cannot be
simply brushed aside as incremental changes. Nor can one ignore the concession
granted for the second residential house, both in terms of interest deduction
and the reinvestment benefit.
GST has been a classic
example of how multiple Government agencies having distinct taxing powers can
collectively administer and recover taxes from the common subject. Perhaps
taking inspiration from the said success, the Interim Budget also proposes
reforms in the levy and collection of stamp duty on financial securities
transactions. Collecting such stamp duty at one place through the Stock
Exchange and sharing the same backend with the State Governments seamlessly on
the basis of domicile of the buying client, could bring in much needed
simplicity in the administration of the said duty.
One more reflection of the mindset
change could perhaps be an elaborate thanksgiving to the tax payers. Through
some examples drawing an emotional connect with the tax payers, the Finance
Minister acknowledged the stellar role of the tax payers in contributions
towards nation- building. While it is always said that taxes are the price that
the society pays for building civilization, it is not very common for a Finance
Minister to acknowledge such contribution wholeheartedly through the Budget
speech.
This mindset change is now clearly visible in many of the interactions with the
Government officials. The CPC – TDS is on a mission to roll out the next phase
of reforms in the field of filing of TDS Returns. In an inspiring talk at the
BCAS, the Commissioner Mr. Sunil Sharma with full humility outlined the
proposed system and wholeheartedly invited suggestions and constructive
feedback for improvements.
The Society had the
privilege to have an interactive discussion with the IIA Global Chairman Mr.
Naohiro Mouri and IIA Global President Mr. Richard Chambers on the side-lines
of the International Conference on Internal Audit. It was interesting to hear
about their life journeys and we could carry home many lessons for the growth
of the internal audit profession. The discussion will be transcribed and
carried in the next issue of the Journal.
A host
of amendments proposed in the GST Act were ultimately made effective from 1st
February 2019. Many of these amendments are carried out retrospectively and
clearly represent a mindset of the Government to understand the ground level
difficulties and provide workable solutions to such difficulties. Notable
amongst them is the permanent burial of the reverse charge mechanism in case of
supplies received from unregistered persons.
It is perhaps now time for the industry and
the professionals to welcome this mindset change with positivity and build up
confidence and assurance in the long-term reforms and growth. While
constructive criticism is an essential ingredient of any live and vibrant democracy,
too much of criticism without a logical basis for the same could result in the
economy reverting back to policy paralysis.
The next edition of the
Journal will mark the conclusion of the 50th year of the Journal. 50
years is a very important milestone. In the context of a magazine published by
a voluntary organisation, it speaks volumes about the contents and the
relevance. The next edition of the BCAJ will do its bit to spread this
positivity especially in the context of the accounting profession and would be
a must read for all the professionals. The Editorial Team led by Raman Jokhakar
has ably curated the best of articles and features and I eagerly await the said
edition. In the meantime, I wish you all a very happy reading.
Yours truly
CA.
Sunil Gabhawalla
President
