F.No.334/12/2016-TRU
Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit
Room No. 146G, North Block
New Delhi, dated the 6th October, 2016
To
Trade and Industry Associations
Subject: Suggestions from the Industry and Trade Associations for Budget 2017-18 regarding changes in direct and indirect taxes.
Sir/Madam,
In the context of formulating the proposals for the Union Budget of 2017-18, the Ministry of Finance would like to be benefited by the suggestions and views of your Association. You may like to send your suggestions for changes in the duty structure, rates and broadening of tax base on both direct and indirect taxes giving economic justification for the same.
2. Your suggestions and views may be supplemented and justified by relevant statistical information about production, prices, revenue implication of the changes suggested and any other information to support your The request for correction of inverted duty structure, if any for a commodity, should necessarily be supported by value addition at each stage of manufacturing of the commodity. It would not be feasible to examine suggest ions that are either not clearly explained or which are not supported by adequate justification I statistics. Further, as regards direct taxes, while forwarding your proposals, please take into consideration the Budget announcement made in Union Budget 2015-16 to reduce the rate of Corporate Tax from 30% to 25% over the next 4 years along with rationalization and removal of various kinds of tax exempt ions and incentives and the plan of phasing out exemptions and tax incentives laid before the Parliament with the Union Budget 2016-17. The Synopsis of your suggestions could be given in the following format:
| Sr. No. | Issue | Justification |
2.1 Further, in respect of proposals relating to changes in Customs and Central excise duty rates, the additional information as prescribed in the Annexure enclosed herewith , may be provided.
3. Your suggestions and views may be emailed , as word document in the form of separate attachments, in respect of Indirect Taxes (Customs , Central Excise and Service Tax) to budget-cbec @in and Direct Tax to ustpl3 @nic.in. Hard copies of the Pre-Budget proposals/ suggestions relating to Customs & Central Excise may be sent to Shri Alok Shukla, Joint Secretary (TRU-1), and Service Tax to Shri Amitabh Kumar , Joint Secretary (TRU-ll), CBEC, whi le the suggestions re lating to Direct Taxes may be sent to Shri Rasmi Ranjan Das, Joint Secretary, Tax Policy and Legislation (TPL-1), CBDT . It would be appreciated if your views and suggestions reach us by the 18th October, 20 16.
Yours faithfully
(Abhishek Verma)
Budget Officer (TRU)
Tel: 011-2309 5543
TAX PROFESSIONAL ACT SHALL BE ENACTED FOR TAX WIDENING AND SMOOTH AND ENHANCED TAX COLLECTIONS.
Tax saving limit shall be enhanced by atleast up to Rs.2,50,000/-. Additional exemption shall be given to the savings in the name of minor dependents.
Exemption u/s 80C and 80E may be allowed for own/ spouse study in addition to the children.
Deducttion under capital gains may be allowed for the payment of Loans with interest cleared, if the property is sold after release from the Bank. there is such deduction in case the property is sold by the Bank. So in case a honest Loanee clears himself the loan borrowing funds from outside effects sale susequently, he is denied of such facility. there should be regard for honesty. it helps a lot for clearance of NPAs.
The Tax advocates shall be given equal rights at par with CAs under Direct/Indirect Tax Laws.
Tax professional Act shall be introduced in Budget session.
Any professional Advocate/ doctor/ Engineer/CA shall be given Flight or train reservation on priority basis,
Tax payers shall be granted with certain amenities in availing the government facilities. It should inspire the citizens to be the tax payer.
TDS on Interest certificates – Now banks are issuing…O.K But whenever there is any mistake or PAN No. given at a later stage the banks are forced to revise. This is causing much inconvenience. To overcome this problem, the banks should issue f16A even if there is no PAN But with cust ID of the banks.
The assessee while filing the return puts his cust ID and f16A certificate No. while filing return. Basing on this while processing the return – if these details match the assessee should be given credit of the same. As the cust ID is a unique No. this should not be a problem.
Like TDS returns – wherever an assessee is allowed exemption – such exemption scheme providers should also be made to file return. For ex. LIC. LIC should file return and those premia remittances should reflect in 26AS. Thus every expenditure allowed to claim should be made reflect in 26AS or …..
in addition to 80C – savings made in the name of a minor who is less than 5 years old upto 50,000/1 lakh should be exempted. Similarly Education fee . Education fee and House rent paid electronically only should be exempted.