new Delhi: Experts of industry and economic sectors believe that Upcoming budget The limit of tax-free income can be increased from 2.5 to 3 lakh rupees and the company tax rate can be reduced from the existing 30-34 percent to 28 percent. Experts believe that in the upcoming budget, there will be an emphasis on investing in agriculture and increasing expenditure on large infrastructure projects so that new employment opportunities can be created. Economic survey presented in the Parliament on Monday also emphasized on creating better employment for the youth.
According to Bimal Jain, tax expert of industry organization PhD Chamber, the finance minister can make some changes in the income tax slab. Income up to three lakh rupees can be completely tax free. At present, the annual income up to 2.5 million rupees is tax free, while the income of between two and a half to five lakh rupees is taxed at five percent. Probably the finance minister can make this slab three to five lakh rupees. After this, tax on income of five to ten lakh rupees will be taxed at 20 percent and the income of more than ten lakh rupees will be 30 percent rate. There may be some change in the surcharge rate too.
Ashok Agrawal, chairman of Globe Capital Limited, former president of Delhi Stock Exchange, says that the government should not tamper with the capital gains tax. Long-term capital gains are tax-free at present while short-term capital gains are taxed at a rate of 15 percent. He said such a hope that the government will not tamper with it.
He also emphasized on providing relief to the shareholders in the Securities Transaction Tax (STT) on the stock exchange. He said that the STT given on trade in the market should be given a rebate of income tax. Agarwal said that traders help in increasing liquidity in the market, so they should be given tax relief on STT. Finance Minister Arun Jaitley will present this government’s fifth and final full budget on February 1.
Nihal Kothari, chairman of the Assocham Indirect Tax Committee, said that the government can cut excise duty on petrol and diesel. With the rise in international crude prices, petrol and diesel prices have climbed in the domestic market. In this case, the petroleum ministry itself has demanded to reduce the excise duty on petroleum products.
Bimal Jain said that the rate of corporate tax would be reduced to 25 to 28 percent instead of the current 30 to 34 percent, it is expected. He said that the Finance Minister had announced to reduce the company tax in its first budget from 30 to 25 percent in four years. Beginning in this direction but it needs solid first.
Dr SP Sharma, Chief Economist, PhD Chamber of Industry, said that special attention is needed to increase public investment and employment opportunities in agriculture sector. For this, more attention should be given to construction work, food processing and textile sectors so as to increase the employment, economic activities can also be accelerated. Kothari said that in the Budget Finance Minister can eliminate dividend distribution tax (DDT) for companies. Taxes can be levied if there is a dividend in the hands of investors. There are many big investors, including promoters of companies, who receive a large amount in the form of dividends which they do not have to pay. In the present system, companies have to pay dividends as well as the tax on profit. While there is no tax on dividend payers. This system can change in the upcoming budget. The person who receives the dividend may have to pay taxes.