Govt to set up expert panel on Companies Act, plans to encourage entrepreneurship

The simplified I-T return form is being brought after the earlier version was opposed by industry, MPs and assessees for its cumbersome disclosure norms.

"I am in favour of the easing. This was twelve or twelve and a half page form, which has existed. Three or four more questions were added. So it became thirteen and a half pages. I was in Washington when I came to know of this. I immediately called up and said stop it because to me whether it was twelve and a half or thirteen and a half, both seem a little excessive," Indian Finance Minister Arun Jaitley said.

The salaried individuals and those persons who do not have business/professional income are required to file income tax returns in either ITR-1 or ITR-2 by July 31.

Following the controversy over the new ITR forms, which sought details of bank accounts and foreign visits, the revenue department announced putting them on hold.

According to PTI, the ITR forms, which was notified last month by the CBDT for the current assessment year, had specific columns for banks accounts, IFSC Code, names of joint account holders and foreign visits, including the ones paid by the companies.

Jaitley said that because of the complicated and stiff provisions in the Companies Act, many entrepreneurs thought of setting up of Limited Liability Partnership firms for their businesses.

Parliament earlier in the week had approved as many as 16 amendments in the Companies Act, which mainly dealt with winding up of companies, board resolutions, bail provisions and utilisation of unclaimed dividends with a few to bring the law in tune with the global standards.

Jaitley had said the amendments were necessitated as there have been complaints from the corporates about the problems ever since the law was enacted in 2013. While piloting the amendment bill in the Rajya Sabha, the Finance Minister had said that 16 amendments were not enough to cover everything.

He had further said "a broad-based committee will continue to go into this question for the next few months as to where the shoe pinches, and this may not be the last amendments which we are bringing in."

The expert committee would comprise representatives of bodies of company secretaries, chartered accountants, industry chambers and ministry officials.

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