IT Act Current Affairs

Recommendations of RV Easwar Committee on simplification of the provisions of IT Act, 1961

Expert Committee to simplify income tax laws headed by Justice (retired) R.V. Easwar has submitted its report to Union Finance Ministry.

The 10 member committee has recommended simplifying provisions related to tax deduction at source (TDS), tax refunds and claims of expenditure for deduction from taxable income.

It also has suggested several taxpayer-friendly measures to improve the ease of doing business in the country, accelerate process of tax dispute resolutions and reduce litigation.

Key recommendations are

  • Deferring the contentious Income Computation and Disclosure Standards (ICDS) provisions and making the process of tax refunds faster.
  • Deletion of a clause in IT Act, 1961 that allows the IT department to delay tax refund due beyond six months. In case of delay in refunds levying higher interest.
  • IT department should stop the practice of adjusting tax demand of a taxpayer against legitimate refunds due whose tax return is under assessment.
  • Treat stock trading gains of up to 5 lakh rupees as capital gains and not business income.
  • TDS rates for individuals must be reduced to 5 per cent from current 10 per cent. Dividend income should be treated as part of total income.
  • Exempting non-residents not having a Permanent Account Number (PAN), but seeking to provide their Tax Identification Number (TIN) for the applicability of TDS at a higher rate.
  • Most of the working processes of the IT departments should be conducted electronically in order to minimize direct human interface.
  • Eligibility criteria under the presumptive tax scheme to be increased to 2 crore rupees from 1 crore rupees to make it easy for small businesses. Such scheme should be also for professionals.


Union Government had constituted this committee in October 2015 by following up on a promise to provide a fair and predictable tax regime.

The committee was tasked to suggest recommendations to overhaul the IT Act, 1961 to remove ambiguities that cause unnecessary litigation and update the laws based on various judgements.


eMudhra launches eSign Services

eMudhra Limited, a leading certifying firm in the country for digital signatures launched first of its kind eSign services in the country as part of the Digital India Vision.

eSign is an online electronic signature service legally valid and secure under the Information Technology Act, 2000. It will facilitate an Aadhaar holder to digitally sign a document within seconds.

It seeks to pave the way for a digital transformation into a paperless environment by revolutionising the way of business and governance conducted in the country.

eMudhra Limited  also launched eMlocker which facilitates a person to store important documents such as Aadhaar cards, PAN cards, electricity bills or any other documents electronically.

About eMudhra

  • eMudhra Limited is a statutory licensed Certifying Authority of India to issue digital signature certificates.
  • Established: in 2008 under the Information Technology (IT) Act, 2000.
  • eMudhra offers variety of other services including Tax filing Services, Digital Signing Solutions, PAN Card Online applications. Digital Certificate Authentication System and Trusted Time Stamping etc.
  • Its clients are corporates, Banks, government organizations, individuals and several small and medium businesses.

Digital Signature: It is an electronic signature used to authenticate the identity of the sender and signer of a message or document. It ensures that original content of the message or document remains unchanged or tapered after it is send.