Team Herald
PANJIM: Stating that Income Tax Act, 1961 has become complex due to frequent amendments, the Goa Chamber of Commerce and Industry (GCCI) has demanded the IT Act be simplified and the provisions be reviewed comprehensively.
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In a pre-budget memorandum submitted to Union Finance Minister Nirmala Sitharaman, the GCCI has welcomed the government’s initiative to simplify the Income Tax Act, 1961, but has also suggested the Act should be reviewed to ensure it is tax-neutral or provides relief to taxpayers, with grandfathering provisions for a smooth transition to the revised regime.
It has also proposed that amendments should take effect from the beginning of the financial year to avoid disruptions mid-year.
Recommending consolidating TDS and TCS sections to reduce complexity, with uniform rates and thresholds, the GCCI has suggested a PAN-based TDS system for ease of compliance, along with the introduction of a TDS wallet system for advanced payments.
Calling for the abolition of cesses and surcharges, which increase the overall tax burden, the trade body has recommended extending the concessional 15 per cent tax rate for new manufacturing companies to boost India’s manufacturing sector and also proposed increasing basic income tax exemption limit and rebates under Section 87A to Rs ten lakh under the new regime.
Demanding support for MSMEs, the trade body has advocated extending presumptive taxation benefits to Limited Liability Partnerships (LLPs) and recommended easing conversion rules for private companies to LLPs to promote the ease of doing business.
For the the tourism sector, the GCCI has proposed to have unified GST rate for hotel accommodation at 12 per cent and allow restaurants to choose between 5 per cent GST without ITC (Input Tax Credit) or 12 per cent GST with ITC.
