BUDGET 2022 WITHOUT HALWA CEREMONEY LET US HOPE FOR CHANGES IN ATTITUDES OF TAX ADMINISTRATION AND MORE HARMONYE WITH TAXPAYERS

[DEV KUMAR KOTHARI]

Earlier articles:

HALWA CEREMONEY indicates fighting attitude by tax department with tax payers and also government with public at large. We need to change to co-operative mode – sukh, shanti, viswas and Shraddha.

An Article By: - DEV KUMAR KOTHARI  February 1, 2021

BUDGET RITUALS- some changes made more changes need to be explored like for HALWA CEREMONEY – VARIATION FOR LADDOO ,KHEER , KESAR PISTA RICE, FRUITS Etc. An Article By: - CA DEV KUMAR KOTHARI  March 23, 2020

Budget without Halwa Ceremoney:

The finance ministry in a press release on January 27 said that there will be no 'Halwa' ceremony, to curb the spread of the virus. Preparation of Budget 2022 are near completion and on 1st February, 2022  The Union Budget 2022-23 will be presented by the Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman, in Paperless form.

Paperless form is continuing from earlier yearS. Very old Halwa ceremony will not take place this year. Instead FM distributed sweets amongst budget team members due to undergoing "lock-in" at their workplaces.

Earlier articles on welcome changes which should continue with change of thoughts:

1. by adopting digital means for budget publication and the same is continuing for Budget 2022. Though this was forced due to COVID 19 but it must continue in future also. Now many similar activities are being digitised and it is very good for health of people and also economy. By adopting ITES and expanding working through ITES many costs have been cut and productivity has been improved in many areas where adoption of ITES is possible.
2.  In my earlier article I had suggested expressed that by adopting HALWA ceremony, we can say that HALWA is treated as PRASAD or BHOG. HALWA is used as Prasad to Maa Durga for victory. In case of tax laws litigation also for outcome we say tax payer has won or government has won the fight. I had also expressed that this need to be changed and for that another Prasad and prayers can be tried.
3.   Between tax payers and government there should be mutuality. Taxpayer must consider tax as a service charge for collective benefits derived from the society for which government spend money out of taxes collected.

4. Author had suggested to adopt other worships with aim of cooperation and harmony between government and public including  taxpayers.
5. Many litigations are started unnecessarily by government authorities just to show that they are acting honestly and in public interest. Some litigations, are for passing over buck to save erring officers.
6. Various schemes for settlements including VIVAD SE VISWAS (VSV)   have also faced lot of litigation. Even steps to reduce litigation by tax departments by providing monetary limits is creating further litigation about applicability of circular .
7.  Author had also pointed out lack of cleanliness of HALWA KADAI ( large open pot) which shows and indicates carelessness and easy going approach of Budget team. Thanks god this year we need not to witness again poorly cleaned Halwa Kadai.
8. Cost of tax collection is very low in India. This can be further reduced drastically if unnecessary proceedings and litigations are stopped by governments. Low tax collection cost is because we have good tax payers who pay tax honestly. However, it can be said that in spite of having best tax payers, governments and government authorities consider public, particularly tax payers as chor. This is perhaps due to natural factor that ‘CHORO KO SARE NAZAR AATE HAI CHOR”
1. Tax Collection cost:

Though latest data could not be found, however, as per the Time series data  2016-17, as per information at page 8 ,tax collection cost was 1.36% during FY 2000-01 reduced to 0.61% in 2015-16. Lowest was 0.54% during FY 2007-08.  This must have come down further due to more sue of ITES by tax departments.

Tax collection cost can be further reduced if government and tax officers treat public / tax payers with dignity , treat them as honest without bias. Unnecessary proceedings for penalties, rectification, revision and reassessment and unnecessary litigation is avoided in good spirit.

Fighting attitude

Fighting attitude need to be changed. Author expressed  hopes that  with prayers of Shri Ganesh as always at beginning and  MAA Sarastati, MAA Lakshmi  can make a change in mind set of tax authorities to gain  sadbuddhi and prosperity.

In a TV serial “Subh Laabh” on SAB TV , Maa Laxmi appears to actress Savita, who is param bhakt, says that  ‘pahle laxmi dimag me aati hai fir ghar me ati hai’.

This must apply to government and government officers also. They must first have sad buddhi, sadbhaav , honesty  to gain wealth  because ‘pahle laxmi dimag me aati hai fir ghar me ati hai’

I hope that with change in mind set there will be more prosperity in governments and public both.

Exploring other kind of Prasad:

Due to Covid and related lock down, Halwa Ceremoney is not taking place, instead sweets have been distributed. This is a forced change, Author hopes that this may make a change .

At cost of repetition and for easy reference I repeat some of my writings on this subject.

In view of changing attitude about relationship between tax authorities and tax payers, and about tax litigation it is time that other form of Prasad should be explored. Various Prasad of sweets, fruits, and mixers are in vogue, in large Pooja complete food is also considered Prasad or bhog. Some type of Prasad are also considered proper for particular Pooja and occasion or purpose.

For example some of kind of Prasad with pictures are given below: 

Laddo – for Sri Ganesh and Lakshmi Poojan – for prosperity our government and public both need to be more prosperous.

Kesar-Pista or yellow sweet rice for Saraswati Pooja – for sad-buddhi (buddhi to bahut hai) . Our Tax authorities need more sad-buddhi to avoid un-necessary work and litigation.

Kheer – Kheer is considered as Prasad on occasion of Saraswati Pooja Krishna Pooja and Guru Purnima.

Discussions to this article

[DEV KUMAR KOTHARI]

LET US HOPE FOR CHANGES IN ATTITUDES OF TAX ADMINISTRATION AND MORE HARMONYE WITH TAXPAYERS - was my expectation expressed in the article. It seems that a half hearted attempt has been made in the Budget to provide oprtunity to file corrected ROI with many limitations. Some provisions have been made to overcome judicial pronouncement in favor of assessee. Retrospective effect to such amendment does not go towards goodwill building. In some provisions more presumptions and more doubts on assesses are also not good.

For effective and better tax administration government has to respect overall populace and tax payers of country and not to make provisions which presumes tax payers as chor merely because a handful of tax payers are tax chor.