EU Budget 2022: ICAI calls for 14 tax and accounting reforms


The Institute of Chartered Accountants of India (ICAI) has called for about 14 tax and accounting reforms in the upcoming Union budget.

The suggestions essentially aim to make the laws simple, fair and transparent. less contentious and friendly, said ICAI President Nihar N Jambusaria.

There are about 14 suggestions from our side submitted to the Central Board of Excise and Customs (CBIC) for consideration, he said on the sidelines of an international conference of CA students.

Suggestions include allowing loss carryback and introducing appropriate legislative amendments to implement it. It is relevant for hospitality, passenger transport and some other industries.

With regard to depreciation on pre-sale, ICAI has suggested amending a provision of the Income Tax Act to clarify the legal position as to whether depreciation can be claimed on the basis of a proportional number of days by the transferor and the transferee company.

He also proposed that section 12 of the law be amended to specify that voluntary contributions must include a contribution in kind and that the value of property so received by a trust or institution must be the fair market value at the date of receipt of this contribution.

The definition of spin-off should include the sale of business in the form of a spin-off whereby a parent company transfers its stake in a subsidiary to its shareholders, the ICAI suggested.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear reader,

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor


Comments are closed.