The federal government is predicted present a extra rationalised TDS framework to scale back the compliance burden for taxpayers, apart from a revamped new concessional tax regime by offering extra advantages like normal deduction, EY mentioned on Sunday.
The Price range wishlist of EY additionally highlights that the federal government ought to present some respite to low- and mid-income taxpayers with annual earnings as much as Rs 20 lakh on the non-public earnings tax facet.
Additionally, chance of ‘inexperienced’ incentives to be launched equivalent to tax exemption to curiosity from inexperienced bonds and rationalisation of capital features charges and holding durations may very well be anticipated within the Price range, to be unveiled in Parliament on February 1.
With regard to Tax Deducted at Supply (TDS), the EY mentioned that presently, 31 sections beneath the Earnings tax Act take care of several types of funds to residents, the place the withholding tax charges fluctuate from 0.1 – 30 per cent.
“The federal government could present a extra rationalised TDS framework to scale back the complexity and compliance burden for taxpayers. There may very well be simplification within the TDS procedures pertaining to NR (non-resident) people,” EY mentioned.
Funding and production-linked incentives could also be thought-about for strategic sectors that may strengthen ‘sustainability’ or result in power effectivity,” EY mentioned.
(Apart from the headline, this story has not been edited by String Reveals workers and is revealed from a syndicated feed.)
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