New Delhi: Defending the recommendations of the Kelkar panel on tax reforms, government on January 3 said it has attempted to remove the "imbalances and apparent irrationalities" and it is difficult to satisfy every section of the society.

"The report of the National Task Force has attempted to remove the imbalances and apparent irrationalities that existed at the micro level so that it may merge with the macro conception of the economy smoothly. In this process, it is difficult to satisfy the requirements of various segments of the society simultaneously," Minister of State for Finance Anandrao Adsul said.

"The task force has made significant recommendations for improving tax administration and tax payers' service. You will be happy to know that government has already swung into action to implement some of the recommendations of the National Task Force," he said addressing the 44th national convention of Institute of Chartered Accountants of India (ICAI).

"The thinking of the task force in the matter of eliminating exemptions, deductions and rebate is in tune with the policy of government to make the provisions of direct tax Laws simple and also to set the alignment with globalisation policies of the government," he said.

Adsul said the government had already constituted a working group on taxation of non- residents and a task force to examine the infrastructure requirements of the Income Tax department.

The minister expressed concern over the rising fiscal deficit saying, "It is an area of concern."

PTI