A good step forward

This refers to “Income Tax Bill: from complexity to clarity” (February 14). From the taxpayers’ perspective, the new Income Tax Bill is clear, concise, and easy to understand. Hopefully this will also help in calculating income tax liability and filing the return without consulting an accountant.

The new Bill should have a mechanism for mutual resolution of disputes to avoid litigation.

YG Chouksey

Pune

Audit accountability

The Delhi High Court’s ruling presents an opportunity for the NFRA to strengthen its regulatory framework by ensuring a clear separation between its investigative and adjudicative functions.

This division is crucial to mitigating potential bias, enhancing credibility, and improving decision quality.

To implement this separation effectively, the NFRA should introduce structured adjudication guidelines, a peer-review mechanism, and capacity-building initiatives to train personnel in due process and evidence evaluation.

Strengthening transparency by publishing clear procedures and decisions will further reinforce accountability. These reforms will not only align NFRA’s functioning with global best practices but also fortify its role in ensuring high auditing standards, investor protection, and financial integrity in India.

Amarjeet Kumar

Hazaribagh (Jharkhand)

Rupee volatility

This refers to ‘What moves the rupee, RBI or market?’ (February 14). Since India consistently faces a trade deficit, FPI, FII, and FDI flows play a major role in determining the rupee-dollar rate. However, the current downward trend in the rupee is primarily due to the US pausing rate cuts and rising bond yields.

The proposed US tariff hikes are likely to further aggravate the situation by impacting Indian exports, thereby increasing the trade deficit.

The RBI’s role has largely been reactive, intervening during periods of high exchange rate fluctuations. In this context, its strategy of accumulating forex reserves appears prudent.

Unless India becomes an export powerhouse, currency volatility is bound to persist. Moreover, excessive intervention could lead to India being labelled a forex manipulator, as seen during President Trump’s previous term. At this juncture, easing regulations to promote forex inflows remains the only viable option for policymakers.

Srinivasan Velamur

Chennai

Published on February 14, 2025