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Parliamentary Standing Committee on finance calls for total overhaul of Income Tax exemptions

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House panel calls for total overhaul of I-T exemptions: Financial Chronical News

Concerned over ever increasing revenue foregone due to income tax exemptions, which crossed Rs 5.5 lakh crore in 2013-14, the parliamentary standing committee on finance on Tuesday sought a comprehensive review of I-T exemption regime ahead of the Union budget in February.

The committee, which tabled its report on revenue in Parliament, said as the matter lingered on for long, it is desired that the outcome of the review be shared with the committee within three months.

The standing committee headed by senior Congress leader Veerappa Moily said the revenue was foregone on account of various tax incentives and exemptions given from time to time in public interest for fulfillment of various policy objectives of the government.

The committee said there should be a comprehensive review of the exemption regime involving revenue foregone of Rs 500 crore or more in the last 10 years, so as to explain how it has served the intended economic objectives or social purpose.
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