Topic: Submitted Ideas and Suggestions for Union Budget 2020 - 2021
15th January 2020
To,
Smt. Nirmala Sitharaman,
The Hon’ble Minister of Finance
Government of India
Government of India
1.
Lower tax rates
a. Income up to Rs. 5 lakh should be made exempt from tax. Peak rate of 30%
should be made applicable on the income of Rs. 20 lakhs and above.
b. We may see a tax of 10% for the people with annual income between Rs. 5
lakhs to Rs. 10 lakhs, individuals earning between Rs. 10 lakhs to Rs. 20 lakhs
may get to pay tax @ 20%.
2. Dividend Distribution Tax (DDT)
Issues:
Replace dividend
distribution tax (DDT) with classical system of dividend taxation: There is a
need to reintroduce the classical tax system of dividend taxation in the hands
of the shareholders with protection for small shareholders and avoiding
cascading impact of inter-corporate dividends.
For the corporates,
there are suggestions that the DDT be reduced from 20 per cent to 10 per cent.
3.
Personal tax Reform and honest tax payer benefit scheme.
4. Senior Citizen Benefit: Give a special rate of interest to Senior Citizens with a minimum of 9%
to 10% and fix that limit to 25 lakhs to help people elder people.
5. Land reforms: Industry groups have asked for sweeping land reforms in India that
allows for land aggregation and private sector investment in agriculture.
6. Export incentives: While India’s export industry hasn’t performed empathetically,
there are suggestions to provide enhanced incentives to boost the export
sector.
7. Interest rates:
While the common man
has asked for higher interest rates for savings accounts, representatives of
financial sector have also made similar demands.
Interest on home loan
deduction for interest on home loan available is Rs. 2 lakhs which was last
revised in 2014. Since then the property prices have gone up significantly.
Therefore, it would be prudent to raise this deduction limit to Rs. 5 lakhs so
that homebuyers can take benefit of this tax break.
8. Agriculture sector:
a. As suggested by CII, The Confederation of Indian Industry (CII) urged the
government to enhance private investment in the food processing sector and
rural start-ups.
b. To stimulate investments by venture capital and private equity firms in
agri startup businesses, he proposed that this sector be treated as a special
category to lower the tax rate on investments in order to compensate for longer
business maturity time and risks associated.
c. The investment for micro-irrigation and solar pumps should be tripled and
GST on processed foods to be reduced to 5%. Also 6,000 smart census towns
should be developed instead of smart cities.
d. There should be minimum GST on every farm inputs such as fertilisers.
e. Support for Agri business model with latest technology and this will help
to boost income level. Agri forum like Shramrajya Parishad or Atma Team
(Maharashtra) should be involved here for more participative ideas.
9. Healthcare:
Healthcare
allocation: A large portion of budgetary allocation should be reserved for
spending on primary health and on establishing the 1,50,000 health and wellness
centres (announced under Ayushman Bharat) which will help to reduce the disease
burden.
While many common
citizens have asked for tax exemptions on healthcare for the elderly, industry
bodies like FICCI have made some radical suggestions, including raising tax
exemption on preventive health check-ups from Rs 5,000 to Rs 50,000.
10. Education:
a. Education is very important for a family in India. It is high time that
incentives should be given specifically to this sector.
b. Government should consider removing tuition fee from Section 80C and a
separate deduction should be given for education expenses.
c. Further Budget it should give tax benefit to taxpayers who invest in
saving instruments of children education
d. Some common-man demands include regulation of private school fees and
other arbitrary fees imposed by higher educational institutions in the private
sector. And make free education till 12th class despite income level as we
know, education is investment in nation building program. Gurukul model kind of
education scheme should be promoted with balance of moral science and school
curriculum together.
11. MSME support: I had got opportunity to work with Vidharbh Federation President and
understand SME requirement closely. I emphasis here on SME reform in coming
budget and promote more swayamsidha (Amravati District MIDC) kind of startup
forum. To achieve this please find below points:
1. Instead of elaborate formalities increase the ceiling limit of GST to 200
lakhs and levy 5% (2.5 + 2.5) based on turnover as it was used to be at VAT for
75 lakhs previously.
2. Increase the Tax audit limit from 200 lakhs to 300 lakhs for all and have 3 slabs in the tax i.e. 8% up to 100 lakhs 6% up to 200 lakhs and 5% up to 300 lakhs which will bring more people under tax bracket under this head
3. For allied activities of Agriculture instead of 0% GST you remove from the submission of the GST
4. Pleases rationalizes the TDS inviting more suggestions
2. Increase the Tax audit limit from 200 lakhs to 300 lakhs for all and have 3 slabs in the tax i.e. 8% up to 100 lakhs 6% up to 200 lakhs and 5% up to 300 lakhs which will bring more people under tax bracket under this head
3. For allied activities of Agriculture instead of 0% GST you remove from the submission of the GST
4. Pleases rationalizes the TDS inviting more suggestions
2. Rationalisation SME /MSME tax structure for corporates will provide a big
breakthrough to small entrepreneurs, formalise the economy, improve retained earnings
for small entrepreneurs, increase surplus for investments for millions of small
entrepreneurs, and make them more credit-eligible, spur the economy and create
jobs at the bottom of the pyramid. Give
substantial benefits to micro enterprises and self-employed professionals. This
structure will benefit millions of small players, level the playing field with
large enterprises who enjoy benefits of scale, and lower interest rates and
create employment at the bottom of the pyramid, i.e. at MSME level.
12. Customs Duty: Indian
manufacturers are facing a lot of hardships in competing with the cheap
imported cells and modules as they are not subject to customs duty. Imposing of
customs duty on these products will enhance the operational capability of the
Indian manufacturers.
Keywords:
#IncomeTax #Finance #Farmers #Agriculture #Health #Education #Environment #WaterConservation #GST #Employment #Entrepreneurship #Railways #Infrastructure #Others
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