An unfair levy
With reference to the editorial ‘Tax overreach’ (August 7), it is strange that the Directorate of GST Intelligence (DGGI) has thought it fit to make a ludicrous and retrospective tax claim on Infosys by applying convoluted logic, which does not stand the test of fairness and scrutiny. How the running expenses of one’s own overseas branch can be interpreted as “import of service” is beyond understanding. This kind of tax demands are sure to send wrong signals to the industry and create a climate of uncertainty and fear of future tax claims. If the DGGI had just wanted to see if by making such a tax claim, a new avenue for boosting tax revenue can be created, the action has only resulted in confusion and distrust. Tax laws should not be misinterpreted by the authorities themselves to create confusion and confound the taxpayers.
Kosaraju Chandramouli
Hyderabad
Spike in digital payments
It refers to ‘Digital journeys’ (August 7). Cash still plays a major role in day-to-day transactions, but the way Indians have adapted to digital payments is unbelievable. From the local vegetable/fruit seller to the ration-wala, all accept payments digitally these days. The Amazon Pay Kearney report says the next phase of growth in digital payments would come from smaller cities. Accepting payments digitally has helped small store owners and street vendors to show income in their bank statements which in turn would help them get credit from the same bank.
Bal Govind
Noida
Welcome amendment
The amendment made to the Finance Bill in respect of long term capital gains (LTCG) on sale of property is welcome. It injects an element of fairness for old buyers by not changing the capital gains tax law retrospectively. Yet, unwittingly perhaps, the amendment has introduced complexity. We now have two tax treatments — for property purchased before and after July 23, 2024. This is in addition to the already existing complexity with respect to LTCG on equity (purchases before and after January 31, 2018). Such changes require detailed record keeping and elaborate reporting by ITR filers. We could move towards simplicity.
V Vijaykumar
Pune
Thrust on sustainability
This is with reference to ‘Carbon credit market at take-off stage’ (August 7). India balances its developmental needs with lower carbon emissions through Common but Differentiated Responsibilities and Respective Capabilities principles. The Carbon Credits Trading Scheme underlines India’s move to leverage climate finance and low-cost climate technologies. Moving forward, the focus must be on ensuring the quality and credibility of carbon credits. Quality involves three aspects: credibility, durability, and spillover benefits. India’s carbon market reforms and the global momentum towards carbon pricing are crucial steps in our journey to a sustainable future.
P Sundara Pandian
Virudhunagar, TN