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Expectation from the finance Budget 2015. ( Full Filled ? )

09-Feb-2015

Finance Budget 2015 - Expectations

Dear Friends,

              Since the Modi Government had taken charge to rule over Indian democracy, our expectation have been increased a lot . The presentation of yearly Budget, normally on  28th Feb every year fulfilled over expectation big or small (?)

               Similarly the first finance Budget for the complete financial year 2015-2016 is for the first time going to be presented by honorable finance minister Mr. Arun Jetli on 28th Feb 2015. The expectation of every body, common man from business, from salary, industries, from corporate and the general public can be precisely worded in following points.

  1. INCOME TAX-
  1. The basic exemption limit for the non-corporate assessee may please be increased as below

I] General assessee Rs. 3,00,000/-

    Senior citizens  Rs. 5,00,000/-

    Super senior citizens Rs. 10,00,000/-

ii] The effective rate may please be-

  1. General Assessee-

3,00,000 to 6,00,000 = 10%

6,00,000 to 12,00,000= 20%

Above 12,00,000   = 30%

  1. Senior Citizens  

5,00,000 to 10,00,000= 10%

10,00,000 to 15,00,000= 20%

Above 15,00,000   =  30%

  1. Super  Senior Citizens

10,00,000 to 15,00,000 = 10%

15,00,000 to 20,00,000 = 20%

Above 20,00,000 = 30%

  1. The Tax rate  of corporate sector and non-corporate entities  (excluding individual  and HUF) may please be kept at 25 %

  1. Surcharge on Income Tax may please be removed.

  1. The deduction u/s 80C of LIC etc. may please increased up to  3,00,000/-  

  1. The Housing Loan deduction of interest may please be increased upto 3,00,000/-.

  1. The minimum alternate tax for corporate entities and alternate minimum tax for non-corporate entities including individual & HUF may please be abolished.

  1. The provision of Tax Audit may please be made applicable to the turn over exceeding three crore for the business trade or industries and 1 crore for the professional

  1. The provision of prosecution may be enacted in extreme cases only.

  1. The provision of presentive taxation for assessee may please be raised up to the turnover of Rs. 3 Crore. The provision may please not be related to books results.

  1. The compulsion of maintenance of books of account for assessee from corporate & non- corporate section of trade business & industries may please be made compulsory above the turnover of RS. 3 crore. Similarly the said provision may please be made compulsory for professional above the receipt of Rs. 1 Crore. In both the cases the compulsion of maintenance of books of account may please not be related to the book results.

  1. The rate of the short term capital gain & long term capital gain may please be reduced at 10%

  1. The duration of the long term capital gain may please be increased at 5 year for holding the capital asset.

  1. The limit of cash transaction may please be increased up to

Rs 1, 00,000/- for disallowance from business.

  1. The penalty for concealment or furnishing in accurate particulars may please be restricted to the maximum of 10%

  1. The interest on late payment of taxes may please be kept at 12% per annum overall.

  1. The interest on the refund on the taxes may please be kept at 12% per annum.

  1. The export incentive of deduction may please be introduced.

  1. The limit for maintenance of book of account may please be reduced  to 5 years to equalize with the central excise and service tax rule.

  1. The concept of standard deduction may please be introduced for the salaried person. The various deduction allowances to salaried people may please be simplified to a one general deduction.

  1. The entire retirement benefit of the salaried person may please be made exempt from the Income Tax .

  1. The concept of agriculture land & agriculture income may please be simplified to, a single concept of an agriculture land and any income of such land may please be made exempted from Income Tax.

  1. In the case of survey the assessment of the assessee may please be restricted to 1 year of operation only.

  1. In the case of search the assessment please may be restricted to maximum 2 years.

  1. In the case of reopening of the case by any means the period of reopening may please be restricted to 2 years only.

  1. In the case of investigation and Calling of information from the assessee it may please be restricted to 2 years.      

  1. The assessee may please not be made compulsory for disclosure either under survey or search.

  1. The scrutiny Assessment may please  be restricted to “issue base” system. It will reduce the hardship of both the Assessee and the department.

  1. The penalty proceedings may please be completed only after the disposal of disputed matters at Tribunal level.

  1. In the case of recovery of disputed dues a lenient view may please be adopted such as – issuing ad interim stay on the filing of Appeal it self, fixation of part payment maximum up to 10% of the disputed tax amount etc.

  1. In case of TDS, lenient view may please be taken while making provisions it is because, by collecting TDS the Assessee is definately helping the department.

  1. The frequency of issuing notifications, circulars, instruction etc. may please be restricted to only one time after the Act & Rule are enacted. Because, past experience shows that the original provision under the act or Rule may please be misinterpreted while implementation.    

  1. GOODS & SERVICE TAX (GST )  

 

  1. The final draft of the three formats of GST such as CGST, SGST  & IGST may please be finalized and be presented for public opinion.

  1. The GST Act in the all three formats may please be simplified.

  1. Once the GST is Implemented, the central & the states may please not be allowed to levy

any other indirect tax.

 

  1. It is requested to have only two taxes particularly Income Tax, the direct tax & the GST, indirect tax to be  operative in India for the revenue generations.

  1. In the GST regime, the concept of concessional forms may be removed

  1. The uniform tax rate may please be introduced in the three tax regime of GST.

  1. It is requested that the maximum rate of taxes under GST may please not be exceeded 10%.

  1. The exemption limit under the GST regime may please be kept at Rs. 25 lakh for Traders & Rs. 3 Crore for Manufactures.

  1. The concept of HSN, Harmonized system of nomenclature may please be simplified & displayed because the levy of taxation under GST regime is based on it.

  1. The frequency of issuing notifications, circulars, instruction etc. may please be restricted to only one time after the Act & Rule are enacted. Because, past experience shows that the original provision under the act or Rule may please be misinterpreted while implementation.  

  1. WEALTH TAX.

  1. In fact it is a Tax on Tax because Wealth Tax is levied on the personal assets of the assessee, which are acquired from the Tax paid income. Therefore Wealth Tax Act may please be abolished.

  1. Either the limit of taxation of net wealth may please be increased upto Rs. 1 Crore.

  1. The tax rate for charging wealth tax may please be restricted 0.1%

  1. The procedure of Wealth Tax Assessment, Penalty &  recovery may please be simplified.

  1. The survey & search under Wealth Tax Act may please be abolished because the creation of assets had also been uncovered under the survey & search in Income Tax.

  1. The frequency of issuing notifications, circulars, instruction etc. may please be restricted to only one time after the Act & Rule are enacted. Because, past experience shows that the original provision under the act or Rule may please be misinterpreted while implementation.  

 

 

  1. CENTRAL EXCISE & SERVICE TAX    

   

  1. Till the enactment of GST, it is requested to increase the Central Excise limit of exemption upto 3 Crore.

  1. Presently there is no separate Service Tax Act. It is covered under finance Act every year. It is therefore requested to enact a separate Service tax Act, if required, and if the implementation of GST is delayed from 1st April 2016.

  1. The basic exemption limit under service Tax Act may please be increased upto 50 Lakh.

  1. The uniform rate of charging Central Excise & Service Tax Act may please be restricted to 10%.

  1. The surcharge, Education cess etc. may please be removed.

  1. The various rules under Service Tax regime may please be gathered under one separate service Tax rules.

  1. Various provisions under Service Tax & Central Excise may please be simplified.

   

  1. The frequency of issuing notifications, circulars, instruction etc. may please be restricted to only one time after the Act & Rule are enacted. Because, past experience shows that the original provision under the act or Rule may please be misinterpreted while implementation.  

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