CEOs expect revision in income tax exemption: Assocham
Over 90 per cent of India's CEOs surveyed by industry body Assocham feel that Finance Minister P Chidambaram is likely to enhance income tax exemption in his Budget.
By PTI |
NEW DELHI: Over 90 per cent of India's CEOs surveyed by industry body Assocham feel that Finance Minister P Chidambaram is likely to enhance income tax exemption in his Budget to boost consumer confidence which needs to be insulated from the global slowdown.
Impressive rise in tax revenues may also influence the government to give higher tax exemption to individuals, an overwhelming majority of 185 CEOs contacted by the Assocham Business Barometer said.
Unlike last year when the exemption limit was raised marginally by Rs 10,000, CEOs expect significant hike for all classes of assessees, including women and senior citizens.
"The rise in tax exemption limits may be accompanied by rejig in the income tax slabs," Assocham President Venugopal Dhoot said.
At present, income up to Rs 1,10,000 is exempted from income tax in case of men while the limit is Rs 1,45,000 in case of women and Rs 1,95,000 for senior citizens.
While the CEOs wanted that 30 per cent tax slab should start from Rs 5 lakh income, they felt that Budget may not be generous enough, given the demand from the social sectors in the last year of the UPA government.
However, 72 per cent of them were expecting rejig in the tax system in the coming Budget.
C Rangarajan, Chairman of the Economic Advisory Committee to Prime Minister, has also suggested that the slab should be reworked.
Eighty-six per cent of the corporate heads said that there was a case for reduction in the corporate tax rate in the wake of buoyancy in the tax collections. Seventy-nine per cent said that this would not affect the revenue generation. The move would rather enhance the compliance rate.
Impressive rise in tax revenues may also influence the government to give higher tax exemption to individuals, an overwhelming majority of 185 CEOs contacted by the Assocham Business Barometer said.
Unlike last year when the exemption limit was raised marginally by Rs 10,000, CEOs expect significant hike for all classes of assessees, including women and senior citizens.
"The rise in tax exemption limits may be accompanied by rejig in the income tax slabs," Assocham President Venugopal Dhoot said.
At present, income up to Rs 1,10,000 is exempted from income tax in case of men while the limit is Rs 1,45,000 in case of women and Rs 1,95,000 for senior citizens.
While the CEOs wanted that 30 per cent tax slab should start from Rs 5 lakh income, they felt that Budget may not be generous enough, given the demand from the social sectors in the last year of the UPA government.
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However, 72 per cent of them were expecting rejig in the tax system in the coming Budget.
C Rangarajan, Chairman of the Economic Advisory Committee to Prime Minister, has also suggested that the slab should be reworked.
Eighty-six per cent of the corporate heads said that there was a case for reduction in the corporate tax rate in the wake of buoyancy in the tax collections. Seventy-nine per cent said that this would not affect the revenue generation. The move would rather enhance the compliance rate.
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