Taxpayers should not be too aggressive in interpreting the income-tax law and claim tax breaks that are far fetched.
Any aggressive approach and interpretative ingenuities by tax payers and professionals who assist them could only lead to more litigation, according to Anita Kapur, Member, Central Board of Direct Taxes (CBDT).
Taxes are now moving into the boardrooms, she said, pointing out that they create the image of not only of the Government but also of an enterprise.
“You cannot survive in the current world if you get the image of a tax avoider,” she said at an international tax conference organised by PHD Chambers of Commerce and Industry (PHDCCI).
Later in the day, Isomata Akio, Economic Minister, Embassy of Japan, urged India to exempt Japanese manufacturers operating in India from withholding tax and also minimum alternate tax.
These taxes should not evolve into being trade barrier and prevent Japan from becoming India’s largest trade partner in times to come, he added.