Exciting Updates on Budget 2024 Live: Personal and Corporate Tax Wishlist
The much-anticipated moment has arrived as taxpayers and corporate entities eagerly anticipate the unveiling of the 2024 Union Budget. This event not only sets the stage for economic policies but also reveals the taxation frameworks for the coming year. The wish-list aimed at fostering a more equitable and efficient tax regime in India is summarized below by Raghunathan Parthasarathy, Partner, Corporate Tax, Tax & Regulatory Services at BDO India.
Personal Taxation Wishlist:
In the realm of personal taxation, there are several key expectations from the general public:
- Increase the section 80C limit from Rs 1.5 lakhs to Rs 3 lakhs
- Raise the section 80D limit to Rs 50,000 (excluding deductions for parents) due to rising health insurance costs
- Double the standard deduction on salary income from Rs 50,000 to better reflect the cost of living
- Option for individuals and HUFs with business income to choose between the new and old tax regimes annually
- Extend House Rent Allowance to the new tax regime
- Provide deduction for interest payable during the construction period in the year of payment itself
Corporate Tax Wishlist:
For corporate tax, the wish-list includes:
- Allowing deduction of CSR expenditure completely under the head ‘PGBP’
- Extension of the sunset clause for Section 115BAB for new manufacturing companies with reduced tax rates
- Recommendations regarding assessment processes
Recommendations for Assessment:
Some key recommendations for the assessment process are:
- Extend the time for filing revised returns to the end of the assessment year
- Allow filing updated returns for missed out deductions or refunds
- Require rectification petitions to be disposed of within a prescribed period
- Implement a time limit of 2 years for disposal of appeals before the CIT(A)
- Reduce pre-deposit of taxes at the first level appellate level to 10%
Exciting times lie ahead as we await the unveiling of the Budget 2024. Stay tuned for more updates and insights on how these proposed changes could impact you and your business.
Let’s make tax season less taxing with these transformative proposals!
