The Union Budget for the year 2016-17 will be presented by the Hon. Finance Minister on 29th Feb, 2016. Every year the nation have habit of looking a comfort level in the Union Budget and this is true for all type of so called classes, Upper, Lower, Middle class. The Comfort level will never reached. If that is the case, then it may be possible that the distance has widen between the so called classes and the Govt, or the Govt priorities, preferences, compulsions, are not understood by the people at large. Whatever may be the reason still We expect following things from this Union Budget.
Passage of the GST Bill.
There were different versions by various political parties, sections of the society, on passage of the GST Bill. As a common man we only come to know that, this bill is so difficult that it requires many years to come to conclusion by all sections to pass the same.
Whatever, may be the reasons, whether true or untrue, whatever may be the views of different sections and compulsions, whosoever want to take the credit of passage of this bill, (Or Debit), If the same is good for the nation at large it has to pass in this Union Budget.
There are no reasons for doing something, but hundred reasons for not doing the same, the nation is interested in the first option and not want any more reasons for not doing the same.
Increase in Various Basic Exemptions Limits:
Income Tax:
The basic exemption limit should be raised from Rs.2,50,000/- to at least Rs.5,00,000/- A mere increase by Rs.50,000/- etc does not serve the purpose. If the Hon Finance Minister decides to do something we hope let it be wholeheartedly and not by piecemeal basis for the same of announcement only.
The basic exemption limit under the various provisions of the Sec.194 of the Income Tax Act may be raised to an expected and reasonable level to reduced the hardship of compliance as well as blocking of the live working capital of the small and medium entrepreneurs in the form of TDS.
For example the basic exemption limit for TDS in case of Professional fees U/S 194 J be raised from Rs.30,000/- to Rs.1,00,000/- a reasonable level.
The Applicable Limit for the Tax audit u/s44AB of the Income Tax in case of professional should also be raised to Rs.50,00,000/- at least so that, they will be afford to bear the expenses, and requirements of the Act . By doing so, the level of compliance will also increased.
The principle of higher basic exemption limits and smaller rate of taxes will in propionate to higher compliance will hold good in all the cases of taxation whether Direct or Indirect.
Clarity in the Provisions:
There were various Tribunal, court judgments passed every year on various provisions of the tax. Sir, I request to accommodate all such decisions, rulings in the respective sections of the Act. By doing so, the concern officers of the department will have a clear view on various provisions and it will avoid the hardship to the assessees to approach higher authority for the relief. If the same, is available, the assessed should get the same at the first level itself.
Clear Instructions on procedures of conducting the assessment. If it is Computer Generated Scrutiny, the issue raised by the system will only be looked into in the assessment, and if it is limited scrutiny the issues to be checked be decided in advance. Let there be transparency, clarity on account of procedures, details and every aspect of scrutiny under the various acts.
Service Tax:
The basic exemption limit for service tax should also be required to increase from existing Rs,10,00,000/- to at limit Rs.50,00,000/-. It will be good if the limit of service tax and limit u/s 44AB of the Income Tax Act will be at par. We remember the good old days when the Service Tax was introduced without any basic exemption limit but the rate of service tax was only 5%. Either increase the basic exemption level to Rs.50,00,000/- or reduced the rate of service tax.
Every Govt has fancy of change in name and purpose of the taxation, The earlier Govt has given the importance to education and we have Primary Education Cess, and Secondary Education Cess on the service Tax. Sir your Govt has priority of Swatch Bharat and has Swath Bharat Cess on service tax. It is better, to charge 1% more in the rate of tax instead of different name and specify that the same will be spent on govt. priorities who so ever in power. A separate taxation of cess will increase the more formalities to be done than the tax.
Sir, the country is tired of various taxes & its fancy names, it is better if you will reduce the numbers and names and club all such in basic tax rate.
Hope, Sir, the requisite COMFORT LEVEL will this time in your budget.
CAclubindia
