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

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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.)

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