Government should raise I-T exemption limit under new tax regime from ₹3 lakh to ₹5 lakh: EY

The steadfast besides suggested that the modular deduction should beryllium doubled to ₹1 lakh nether the caller taxation regime. Although income up to ₹7 lakh is exempt nether the caller taxation regime, a 5 percent taxation is levied connected income implicit ₹3 lakh erstwhile this threshold is surpassed.

During their pre-budget consultations with the government, manufacture bodies besides called for reducing the load connected taxpayers to stimulate consumption. Despite the system increasing by 8.2 percent successful FY24, backstage last depletion expenditure remained subdued astatine 4 percent.

Experts suggest that maintaining specified precocious economical maturation rates is unsustainable without a corresponding summation successful consumption.

“Enhance the extant tax-free LTCG ceiling connected merchantability of equity shares/equity oriented communal funds/units of a concern spot from ₹1 lakh to ₹2 lakh," the institution said.

The bureau besides called for an hold of taxation outgo deferment for worker banal options astatine the clip of merchantability to see each employers, not conscionable eligible start-ups.

In the 2020 Budget, the authorities had extended this payment to eligible start-ups, but its exertion remained limited.

Additionally, the steadfast requested clarity connected TDS and the Systematic Lump Sum Withdrawal (SLW) installation nether NPS.

“In presumption of rationalisation measures, the analyzable operation of Tax Deducted astatine Source (TDS) rates crossed antithetic categories of payments has created disorder and compliance burdens. Simplifying these rates by consolidating categories and creating a tiny "negative list" of non-liable payments for TDS could streamline processes and trim disputes," said Sameer Gupta, National Tax Leader, EY India.

For indirect taxes, EY recommended simplifying customs compliance procedures, introducing a one-time quality solution strategy nether Customs and GST law, and extending RoDTEP benefits.

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Published: 27 Jun 2024, 09:39 PM IST