by ravi mahajanunion budget 2023 announcements on february 1 are expected to further make india the most attractive investment destination in the current geopolitically uncertain times the growth of the information technology sector is likely to be a key driver to achieve this goal according to a recent forecast by gartner information technology spending in india is projected to grow at 26 in 2023 mainly led by a healthy growth of 137 in the software industry spend competitivenessas has been seen in numerous cases the winner takes it all in the technology sector given how such businesses can be scaled up globally within no time while access to investment capital is far easier as compared to earlier years it is important that in a strongly connected world india makes its technology sector as competitive as possiblethe present corporate tax rate is 22 before surcharge and cess while the global minimum tax rate agreed amongst most nations is 15 the tax rate for new manufacturing companies in india is also 15 before surcharge and cess reduction in the corporate tax rate for all companies would help make indian businesses more competitive and would help them capture global market share further a reduction in the tax rate for highincome earning individuals would help retain entrepreneurial talent in the countryalso read budget 2023 states must eliminate subsidy leakagescurrently the capital gains tax regime is complex with varying tax rates differences in treatment based on holding period etc statements from finance ministry officials suggest that the government plans to bring simplicity to the regime this may be achieved by providing uniformity and would be a welcome move if undertaken in a consultative mannersignificant cash blockage arises due to restrictions on claiming a refund of gst paid on capital goods a longstanding ask has been for the allowability of such refunds to taxpayers who do not need to pay gst on services that they exportsimplification of compliancein a continuous pursuit of widening the tax base the government has introduced a wide gamut of withholding tax provisions over the years with varied rates and thresholds and overlaps in scope thus there is an urgent need to simplify the withholding tax structure better still the government could phase out the requirement to withhold taxes on payments to residents as advances in digitalization have made information easily available to the tax authorities various other countries do not impose withholding obligations on payments to residentsfurther relief could also be brought in by doing away with a few contentious clauses in the tax audit report the recently mandated clause on gst has added much burden to the auditor as well as the taxpayer as it requires voluminous information that is difficult to extract from the erp systems of most taxpayers the objective of the clause on gaar is not achieved since tax auditors are unable to undertake elaborate investigations not only of the taxpayers records but also of other parties to arrangementscontroversy managementmeasures taken by the government over the