In its pre-budget recommendation submitted to the revenue secretary Tuesday, Ficci raised concerns over pending litigations and highlighted the need for reducing pendency before the Commissioner of Income Tax (Appeals) and demanded allowing refund of taxes collected during the pendency of an appeal to free capital.
According to Ficci, around 540,000 appeals involving ₹18.16 lakh crore were pending before the CIT(A). The industry body attributed this to the faceless appeal regime introduced during the Covid-19 pandemic, which it said has resulted in inadequate monitoring of the system’s functioning.
Ficci recommended that the government direct CIT(A) to give priority in disposing of high-pitched assessment cases, where the assessee has submitted detailed written submissions, as well as appeals against orders passed in scrutiny assessments. It also suggested filling up 40% of vacancies at the level of CIT(A) through internal promotions, transfers, and external recruitments.
Ficci emphasised the need for rationalising the TDS rate structure, suggesting simplification of the system with three rate structures: TDS on salary at the slab rates, on lotteries/online games at the maximum marginal rate, and two standard rates for other categories.