CA Sudhir
Halakhandi having more than 500 Tax Articles to his credit in almost
all the top tax journals of the country covering Both direct and indirect
Taxes – Income Tax, VAT and Service Tax. The rarest of the rare talent having
command on both direct and indirect taxes.
We have made him Caclubindia featured personality in JAN 2009. He is on
board with us since Nov'08 but in a short span of few months he has made
a remarkable contribution to the community. The students love him for his
encouragement, professionals respect him for his opinion and we adore him
for being with us...
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Transcript
of the Interview
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Today we have with us CA SUDHIR HALAKHANDI, eminent Tax expert
and columnist with me and since we have already seen his Budget
blog, comments and articles hence I am with him with some of the
questions to be asked from him for Caclubindia.com. Since he is
very much busy for his pre-budget schedule hence we are straight
forward going for our questions. – CA NIKITA JAIN
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CA Nikita Jain
Good Morning Sudhir Sir! So you are very much busy in pre-budget
contributions from your side. Now please tell us what are your major
expectations?
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CA Sudhir Halakhandi
The political situation has got the stability first time since
last 10 years or more and further the Government has almost clear
mandate so my expectation is that the tax reforms will get the speed
and further there will be a clear indication from the side of the
Finance Minister that simplification is also on his top priority.
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CA Nikita Jain
How the recession will affect the forthcoming Budget?
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CA Sudhir Halakhandi
Nikita, See the signs of revival from recession are now very
clear hence recession will have very little effect on this Budget.
To boost the economy further the recently reduced rate of central
excise and service tax should be maintained.
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CA Nikita Jain
Mr. Pranab Mukherjee was the Finance Minister in 1982 also and
now he is again after more than 25 years. Is it possible for him
to deliver the good in the totally changed financial, technical
and economic atmosphere.
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CA Sudhir Halakhandi
Yes, Nikita this seems to be a amazing situation for all the
fields except politics and you know politicians specially politicians
of this south Asian area of the world have the special capacity
. Mr. Mukherjee is also a seasoned politicians and he had been categorized
as the Best finance minister of the world by a world class Economic
Journal during his first inning as FM.
Further you know he was not out of politics in those years and hold
many important posts and also see here there is perfect system in
India in the form of a Bureaucratic system to support the Finance
Minister.
In my opinion in the present political and economic situation a
seasoned Finance Minister Like Mr. Mukherjee is the need of the
hour.
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CA Nikita Jain
But Sudhir Sir! Why not Dr. Manmohan singh or Mr. Chidambaram?
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CA Sudhir Halakhandi
See Nikita , Dr. Singh is the PM so we should not think about
him to be FM and regarding Mr. Chidambaram my opinion is that this
is not the time for experiments.
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CA Nikita Jain
What do you mean Sudhir Sir???
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CA Sudhir Halakhandi
Yes, Mr. Chidambaram love experiments. See taxability of gifts,
Banking cash transaction tax, Fringe benefit tax are the experiments
of Mr. Chidambaram. But at present the trade and industry require
some stability on taxation both direct and indirect front so my
preference is Mr. Mukherjee.
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CA Nikita Jain
Now what do you expect on taxable limit?
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CA Sudhir Halakhandi
I think there will be no change or very minor or slight change
may be there because the last budget has raised the Limit sufficiently.
So I think there is no hope on this side and further we should not
have any expectation on tax rate also.
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CA Nikita Jain
And tax on agricultural Income Sir?
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CA Sudhir Halakhandi
See Nikita at present there is no possibility of taxing the agricultural
income though the time has come to think on this front also but
at present this is state subject and to be taxed under central government
it will require the constitutional amendment. But in my opinion
a debate on this matter should be started now at least to tax the
farm income.
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CA Nikita Jain
Sudhir Sir! Mr. P. Chidambaram has talked about GST in his last
continuous 3 Budgets and I think you are connected with concept
since then and I read you’re much talked article “Goods and Service
tax- An introductory study in ICAI CA Journal. Sir 2010 is the next
year now what is your opinion?
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CA Sudhir Halakhandi
In my opinion there is a will in the present Government to introduce
GST in 2010 but still there is no consensus in with the states so
there is a possibility of it’s time being postponement but sooner
or later it will be introduced and now it is now only matter of
time.
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CA Nikita Jain
There is a talk that Standard deduction should again be introduced
for the salaried employees. What is you expectation sir?
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CA Sudhir Halakhandi
I think this demand of the salaried taxpayers should be accepted
and in my opinion the FM will accept this demand. See Nikita, there
was a reason for giving the standard deduction and the reason was
that the salaried employees has to make and bear certain expenditure
for earning the salary and the reason still exist hence for the
same reason it should be introduced again.
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CA Nikita Jain
I read somewhere you wrote that TDS provisions are becoming tough
and tough. Now what do you expect on this front from Mr. Mukherjee.
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CA Sudhir Halakhandi
Yes Nikita since I am attached with the ground realities hence
I know the difficulties faced by the common and majority of taxpayers
on this front. The law makers are making the procedures tough and
tough on this front without knowing the ground level realities and
difficulties of the taxpayers. Mr. Mukherjee is the seasoned politician
and if he understands the difficulty of taxpayers on this front
then there will be a relief.
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CA Nikita Jain
The ITRs are too big so it their any suggestion from your side
on this issue.
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CA Sudhir Halakhandi
Yes, the returns forms are too big and complex and here the declared
policy of simplification is violated. The maximum size of the return
form should be 4 or 5 pages and lot of experts has suggested this
to the Government.
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CA Nikita Jain
Do you feel that there is a need to make changes in taxation
law every year.
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CA Sudhir Halakhandi
Yes Nikita, this seems to be an interesting question and in my
opinion there is no need. We should have taxation amendment once
in five years.
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CA Nikita Jain
OK sir, Nice talking to you and I am very much thankful to you
for sharing so much with Caclubindia . Have a nice day sir.
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CA Sudhir Halakhandi
Thanks Nikita and good wishes to all the members of CAclubindia.
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Comments on this Interview
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CA Parveen Sharma
[Scorecard : 23]
05 July 2009
" Thanks to CA Sudhir and Nikita for valuable inputs pre budget. "
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Ganesh
[Scorecard : 571]
23 June 2009
" nice interview. "
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