ICAI Calls for Tax Reforms to Boost Sustainability and Simplify ITR

The Institute of Chartered Accountants of India (ICAI) has proposed tax reforms to promote climate change mitigation, a special tax regime for partnerships and LLPs, and the simplification of income tax return forms. These measures aim to foster economic growth and encourage sustainable business practices in India.

The Institute of Chartered Accountants of India (ICAI), the apex body of chartered accountants, has called for specific tax benefits to encourage climate change mitigation strategies and proposed a distinct section in the income tax returns for income from shares and securities.

ICAI has advocated for a targeted tax regime for partnership firms and limited liability partnerships (LLPs) as well as the simplification of the income tax return forms, according to their recent pre-Budget Memorandum for 2025. These recommendations are aimed at driving economic growth while supporting environmental sustainability, the institute stated in a press release.

Included among ICAI's suggestions are the rationalization of conditions for handling defective income returns in the e-filing regime, the simplification of capital gains provisions, and the introduction of specific audit certifications to ease the taxation process on certain transactions.

(With inputs from agencies.)