India Inc expecting budget to lower personal income tax rates
India Inc expecting budget to lower personal income tax rates
India Inc expecting budget to lower personal income tax rates India Inc is banking on the budget to ascertain a discount in income tax to revive the sagging consumption demand after getting the most important tax benefit by way of a steep reduction in corporate tax rates, says a pre-budget survey. minister of finance Nirmala Sitharaman will increase the tax exemption limit from Rs 2.5 lakh once a year currently, majority of respondents surveyed by tax consultancy firm KPMG opined.
GDP OF INDIA
The majority of respondents also feel that the govt within the forthcoming Budget to be unveiled on February 1 will increase the quality deduction and provides more incentives for housing loans.The government had slashed corporate tax rates to 25 per cent for old companies and to fifteen per cent for brand spanking new companies provided they're able to forego all the prevailing exemptions.
Though the move was hailed by many as a booster to revive growth it's belied the expectation as growth has since then fallen to quite six-year low of 4.5 per cent within the September quarter from 5 per cent within the previous quarter.
What more the advance estimate last week has pegged the full-year real GDP growth at 5 per cent while the nominal GDP growth at a 48-year low of seven .5 per cent, down from the budget estimate of 13 per cent.
Also, most of the old-generation companies have decided to draw from the prevailing incentives and to not switch to the new tax regime.
However, within the pre-budget survey involving 215 companies by KPMG India this month, quite half the respondents decide to choose the lower tax regime of twenty-two per cent by abandoning available incentives from next fiscal.
GDP OF INDIA
A majority of respondents even be lieve that the rate for foreign companies should also be reduced in light of tax cuts for domestic companies.
A further stimulus by way of private tax cuts is additionally anticipated. "Majority anticipate the essential exemption limit of Rs 2.5 lakh for people are going to be increased. They also expect a rise within the income limit at which the utmost marginal rate of 30 per cent kicks in. If implemented, this will help spur consumer demand by complementing the rate of interest cuts delivered since last year," says the survey.
A majority of the respondents also believe that the minister of finance won't introduce an estate tax . this is often in line with the general expectation, that there exists a requirement to supply a fiscal stimulus by reducing taxes on individuals.
About 50 per cent of the respondents expect tax holiday for exports available to SEZ units to be extended to units found out beyond March 2020.
Dispute resolution continues to be a neighborhood of concern for many companies with almost half them believing that the approach of taxmen to tax disputes aren't in line with international norms.
While the dispute resolution panel is indeed a quick track mechanism to deal with international tax and transfer pricing disputes, almost half the respondents believe that this mechanism isn't meeting the stated objective of resolving disputes amicably.
A further stimulus by way of private tax cuts is additionally anticipated. "Majority anticipate the essential exemption limit of Rs 2.5 lakh for people are going to be increased. They also expect a rise within the income limit at which the utmost marginal rate of 30 per cent kicks in. If implemented, this will help spur consumer demand by complementing the rate of interest cuts delivered since last year," says the survey.
A majority of the respondents also believe that the minister of finance won't introduce an estate tax . this is often in line with the general expectation, that there exists a requirement to supply a fiscal stimulus by reducing taxes on individuals.
About 50 per cent of the respondents expect tax holiday for exports available to SEZ units to be extended to units found out beyond March 2020.
Dispute resolution continues to be a neighborhood of concern for many companies with almost half them believing that the approach of taxmen to tax disputes aren't in line with international norms.
While the dispute resolution panel is indeed a quick track mechanism to deal with international tax and transfer pricing disputes, almost half the respondents believe that this mechanism isn't meeting the stated objective of resolving disputes amicably.
GDP OF INDIA
Just under 50 per cent of respondents believe that provisions handling the place of supply of R&D, testing services and other performance-based services under GST are detrimental to services exports saying the exclusion affects the industry.
According to Hitesh Gajaria, co-head of taxation practices at KPMG, the survey indicates that rate cut for people is that the favorite item by everyone. this is often in line with expectations that lower tax rates for people , along side the corporates, will boost spending and investment.
Companies also are hopeful of extension of tax holidays for exports to encourage more foreign inward remittances and continuing the weighted deduction for R&D spend to encourage local manufacturing, says the survey.
Introduction of e-assessment scheme last year to minimise the interface between taxpayers and therefore the tax administration is seen as a welcome move, with many respondents believing that this may cause greater transparency and efficiency. BEN BKS CS MR MR
According to Hitesh Gajaria, co-head of taxation practices at KPMG, the survey indicates that rate cut for people is that the favorite item by everyone. this is often in line with expectations that lower tax rates for people , along side the corporates, will boost spending and investment.
Companies also are hopeful of extension of tax holidays for exports to encourage more foreign inward remittances and continuing the weighted deduction for R&D spend to encourage local manufacturing, says the survey.
Introduction of e-assessment scheme last year to minimise the interface between taxpayers and therefore the tax administration is seen as a welcome move, with many respondents believing that this may cause greater transparency and efficiency. BEN BKS CS MR MR
India Inc expecting budget to lower personal income tax rates
India Inc expecting budget to lower personal income tax rates
Reviewed by Business Opportunity in Maharashtra बिझनेस अपॉच्यूनिटी इन महाराष्ट्र
on
January 24, 2020
Rating:
Reviewed by Business Opportunity in Maharashtra बिझनेस अपॉच्यूनिटी इन महाराष्ट्र
on
January 24, 2020
Rating:
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