Income tax relief for the people in the lowest slab may need to be considered in the upcoming full Budget 2024-25 considering the high levels of inflation, according to newly elected CII President Sanjiv Puri. In an interview with PTI, he also suggested creation of an institutional platform for consensus building between the Centre and States to successfully carry out of all reforms, including those related to land, labour, power and agriculture.
The industry body also said it does not see compulsions of coalition politics hampering the reforms in the third term of Prime Minister Narendra Modi. In stead, it believes that the performance of India economy and the success of policies in the previous two stints would set the base to accelerate the process.
“Broadly, I would say at this point of time it is public capex, adherence to fiscal glidepath, roadmap for investment in the social infrastructure, green fund and greater investment in the rural sector. These are the board principles,” he said, when asked about CII’s expectation from the upcoming full Budget for 2024-24.
On the tax side, he added, “What we are suggesting is that the process of simplification should continue. There are certain suggestions relating to capital gains, which are different for different instruments. Can it be rationalised.?’
Puri further said there are some operational difficulties in TDS (tax deducted at source) and multiplicity of rates and CII would prefer simplification of these.
“… over a period of time as far as customs is concerned, we should move to a three-tier structure, primary at the lowest level, intermediaries in between and then the finished goods and all over a period of time should be moderate rates with some exclusions, as deed appropriate,” he added.
Under the old regime, income tax exemption limit is applicable on income up to Rs. 2.5 lakh for individuals whereas under the new regime, the exemption limit is on income up to Rs. 3 lakh.
Read more at: ET BFSI
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