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New Delhi, Nov 8 (PTI) An amnesty scheme for customs, reduction in tax rates for individuals and Limited Liability Partnership firms, easier tax compliance, fast tracking of faceless appeals and a dedicated dispute resolution mechanism top India Inc's wishlist for the next Budget submitted to the government.
Representatives from all four key industry bodies, CII, FICCI, ASSOCHAM and PHDCCI, have put forth detailed recommendations with regard to the Budget, to be presented on February 1, 2025, in separate meetings held with top Finance Ministry officials.
Industry body FICCI sought the introduction of an "Amnesty Scheme under Customs" as a one-time settlement scheme to clear past dues, arguing that it will help the industry to reduce the baggage of litigation.
Similarly, Assocham has also pitched for the introduction of a comprehensive Tax Amnesty Scheme under Customs.
"A one-time settlement scheme to clear past litigations can be considered by the Government, on the lines similar to Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 for pre-GST era indirect taxes and Vivad Se Vishwas for Income tax," Assocham stated.
It suggested that the Government can provide relief to importers against all the disputes related to the Customs Act; Partial waiver of the duty in dispute depending on the quantum involved; and Complete waiver of interest and penalty.
Industry chambers have also demanded simplified compliance with respect to TDS (tax deducted at source) and the introduction of a new independent Dispute Resolution forum for effective and time-bound dispute resolution.
To enhance women-led development, FICCI urged the government to exempt reimbursement of daycare expenses from perquisite taxation.
PHDCCI submitted suggestions related to a reduction in rates of taxation for Individuals and Limited Liability Partnership firms, fast tracking of faceless appeals by introducing a statutory period; increase in the limit of presumptive tax scheme for professionals; expansion of the PLI scheme beyond the 14 sectors; change in classification norms of MSMEs for NPAs and interest equalization scheme on pre and post shipment export credit for MSMEs services exports.
"PHDCCI expects a significant increase in the size of Union Budget from Rs 48.2 lakh crore for the year 2024-25 to more than Rs 51 lakh crore for the year 2025-26 and continued capital expenditure expansion from Rs 11.11 lakh crore for the year 2024-25 to more than Rs 13 lakh crore for the year 2025-26," said Hemant Jain, President, PHDCCI.
Moreover, Assocham sought decriminalisation of certain TDS defaults under Section 276B which provides for imprisonment for up to seven years if a person fails to comply with certain tax deduction at source (TDS) provisions.
"The Government should consider amending this to exclude from its ambit any failure to pay tax or ensure payment of tax required," Assocham said.
The chamber argued that Criminal proceedings should apply only when the taxpayer has enriched himself at the expense of the government, and not to cases where certain payments / benefits are made or provided without applying TDS. Normal penalty and interest consequences can continue to apply.
Besides, CII called upon the government to increase the capex by 25 per cent over 2024-25 (BE) with a sharp focus on infrastructure related to rural areas, agriculture, and the social sector.
CII also made a strong pitch for further reforms in the tax system, including through simplification of taxes, increasing India's tax competitiveness, broadening of tax base and reducing tax litigation to build a globally competitive Indian economy..
The Budget for 2025-26 is set to be presented on February 1, 2025.
(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)
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