PANJIM: Goa Chamber of Commerce and Industry (GCCI) has written to Union Minister of Finance and Corporate Affairs Nirmala Sitharaman suggesting tweaking in the threshold limits under the new tax regime.
In a representation, which has also been marked to Ravi Agarwal, Chairman, Central Board of Direct Taxes (CBDT), the GCCI has said a higher income tax threshold will not only alleviate the financial burden of rising household costs but also boost economic growth through higher consumption.
“While there is an incremental change to the existing tax structure in the Finance Bill, we suggest a higher income tax threshold which will not only alleviate the financial burden of rising household costs but will also boost the economic growth through higher consumption,” it said.
It has also suggested to raise the rebate u/s 87A which is now available up to an income of Rs seven lakh to Rs ten lakh under the new tax regime to align with the new slab rates.
Stating that the proposal to levy TDS at 10 per cent on payment of salary, remuneration and interest to partners by the partnership firm exceeding a mere Rs 20,000 will lead to many practical challenges, it has suggested that the proposal for TDS on partnership firms be rolled back.
It has also suggested that the Long Term Capital Gains Tax rate be maintained at 10 per cent across all asset classes to incentivise savings and investments, thereby boosting the capital and other asset markets. The trade body has also suggested that the buy-back of shares be taxed at flat rate of 15 per cent and not be taxed as per the slab rate.
It has said that the proposal to have a comprehensive review of the Income-tax Act, 1961 within six months should be published in public domain well in advance so that effective stakeholder consultation can take place. It has appreciated the proposal for not applying penalty for failure to disclose movable assets not exceeding Rs 20 lakhs in aggregate.
