PwC SUGGESTS 1 TAX ON MARKET TRANSACTIONS

New Delhi, April 30: Consultancy firm PwC India has suggested a single tax on capital market transactions as against the current practice of levying STT and capital gains tax.

In comprehensive recommendations to the task force set up by the government to redraft the over 50 year old Income- Tax law, PwC has also made a case for reducing compliance for non- residents to promote ease of doing business in India.

In November last year, the government had constituted a task force for redrafting the IncomeTax Act, 1961 in sync with the economic needs of the country.

In its recommendations, PwC India said multiple levy of tax on the same transaction increases the cost of transactions and makes the Indian capital market unattractive to investors.

“There should be a single tax levy ( of either Securities Transaction Tax or capital gains tax) instead of the current regime of levying both taxes,” it said.

It further stressed on simplification of compliance obligations and said there should a single return for incometax and withholding tax could be made to allow for one consolidated assessment.

On reducing compliance for NRIs, it opined that if full taxes have been withheld, they should be exempt from filing tax returns in India.