The Ministry of Corporate Affairs (MCA) is now set to launch random electronic scrutiny of corporate filings later this year.
It is to improve compliance, while undertaking a series of steps to make life easier for businesses, including through decriminalisation of laws.
MCA is moving to a pre-field and auto filing regime for returns that will help companies comply more easily. These pre filed ITR’s will make tax compliance easier for everyone.
This will also make the filling of the income tax returns convenient, encourage more people to reveal their true incomes and not misreport their income to evade tax.
Apart from reducing the time required to file a return, automation will also ensure the accuracy of data as chances of errors while filing taxes get reduced substantially.
Further, to reduce the burden on companies, especially the smaller ones, the Budget has also announced an increase in the threshold. Companies with paid-up capital of up to Rs 2 crore and turnover of up to Rs 20 crore will fall under small category. While, earlier, this threshold for paid-up capital was Rs 50 lakh and turnover level was Rs 2 crore.