Union Budget 2024: In prebudget talks with revenue secy industry bodies ask for tax reforms

Three trade our bodies steered adjustments in India’s tax regime of their pre-Finances discussions with Income Secretary Sanjay Malhotra in New Delhi on Tuesday.

“To spice up consumption demand within the quick time period, steps resembling offering a marginal reduction in revenue tax on the decrease finish of the spectrum with taxable revenue upto Rs 20 lakhs; discount in excise duties on Petrol and Diesel: upward revision of minimal wages of MNREGA; elevating DBT quantity underneath PM Kisan had been steered by CII,” mentioned Sanjiv Puri, president of CII.

“We have now steered to the income secretary to take the slab of 30 per cent past Rs 40 lakh revenue in order that at the least the center class is spared from this tax bracket, and is taxed on the fee of 20-25 per cent under Rs 40 lakh,” Mukul Bagla, chair of Direct Taxes Committee at PHDCCI informed reporters after the assembly.

At the moment, underneath the brand new tax regime, folks with revenue above Rs 15 lakh are liable to pay a tax of 30 per cent. Within the previous regime, this was relevant for these above the revenue of Rs 10 lakh.

Hemant Jain, senior Vice President at PHDCCI, mentioned that they’ve additionally requested for exemptions to be elevated.

FICCI, then again, didn’t ask for any exemptions and concessions however steered simplification of taxation in India.

“All the thrust is on simplification,” mentioned Dinesh Kanabar, mentor at FICCI Tax Committee, highlighting that presently there are a number of charges of withholding taxes and excessive tax is collected at supply. He additionally mentioned that there have been discussions on dispute decision and that that they had steered simplification of the capital positive factors tax construction in India.

In its presentation, CII additionally referred to as the present capital positive factors taxation construction in India “advanced”. It steered that the holding interval for turning long-term for monetary belongings be stored at 12 months and for different belongings at 36 months.

CII additional steered that long-term capital positive factors tax fee be fastened at 10 per cent for monetary belongings and 20 per cent for belongings like immovable property. For brief-term, it steered that monetary belongings be taxed at 15 per cent and different belongings on the relevant charges. The physique additionally steered that company tax charges be maintained on the present ranges to offer “tax certainty”.

For oblique taxes, CII really helpful decriminalisation of some offenses underneath GST and that it ought to be introduced underneath a three-tax construction.

“The 12 per cent slab may very well be merged with the 18 per cent slab, to be round 14 or 15 per cent,” it mentioned.

“A detrimental record of areas could also be supplied, which can specify circumstances resembling interpretational points, clerical errors, and so on. the place prosecution provisions shouldn’t be made relevant,” it added.

Pranav Satya, chair of the FICCI Tax Committee, mentioned that the physique had earlier put forth its suggestion on GST.

“As part of the FICCI agenda, we have now talked about initialisation of GST 2.0 constructing on the success of GST implementation, which has achieved each its aims of eradicating boundaries to commerce in addition to of a better formalisation of the financial system,” Satya mentioned.

PHDCCI mentioned they’ve additionally requested for introduction of faceless evaluation in oblique taxation.

“We additionally steered that on the traces of revenue tax, we ought to be given a faceless evaluation scheme (for oblique tax) additionally,” mentioned Ashok Kumar Batra, chair of the Oblique Taxes Committee at PHDCCI.

“In case it’s not potential so that you can introduce faceless evaluation, at the least digital hearings ought to be made necessary wherever they’re being requested for,” Batra informed the income secretary.

First Revealed: Jun 18 2024 | 7:46 PM IST