1. Re-introduction of Standard deduction to Salaried and pensioners
This category of assessees are the genuine class of assessees and now they made as par to other category of assessees. So,this Class of assessees should be given a privilege. So, Standard deduction for Salaried and pensioners may be Re-Introduced again and at a reasonable slabs.
2. Enhancement of Tax rebate under section 80D
As the rebate of 80D is not enough to meet out in the current Inflated scenario, the rebate may be enhanced from Rs.30000 To Rs.50000.
3. Enhancement of Basic Tax free Exemption limit
As our respectful Finance Minister aware all life atomosphere Including cost of living and etc., that the Indian citizen prevailing The Basic Exemption limit may be increased from the present Value of Rs.250000 to atleast Rs.350000.
4. Amendment required in Section 40A(3)/40A(3A)
In the previous years, Section 40A(3) is charging provision for Payments made in Excess of Rs.20000 by cash other than by Cheque or Demand draft etc on any payment of Expenditure. Previously the disallowance for this violation is 20% of the payment. But, now it is made as 100% disallowance of the payment.
This prevents the very essence of our constitution, The penal provisions of any law shall be with a motive to Self realization with a small penalty depending on the status of violation .B ut,the 100% penalty will not regulate the violators. Hence, Section 40A(3) shall be amended accordingly.
5. Amendment of Section 234E
This is the very severe measure of the punishment to the deductors, Who on behalf of Government deducting and remitting the tax but failed to filing the TDS return. This section provides Rs.200 late fees (the other name of penalty) per day to be paid for non filing of TDS return from the due date to the date of filing or notice.
The non remittance of Deducted tax and non filing of TDS return need not be treated as the same violation.
Some instances shown that Lakhs and Crores of rupees Deducted from various heads and purposely not remitted to The Government accounts.This should be punished with proper and adequate penal Provisions.
But, the deductors with least man power, lack of knowledge, Unawareness who unable to file the TDS return even if they Deduct and remit the tax.
Government introduced this late fees to regulate the TDS Returns so as to ensure the updation of Deductees and to made Them avail the TDS credit in time.
This late fees is very high. If a deductor failed To file the return of 1st quarter and filed in the succeeding financial year (that is Assessment year)the penalty may be resulted in Rs.73000 (Rs.200*365 days). So, the section may be amended with late fees with the monthly slab such as Rs.3000 per 3 months belated ,6000 for 6 months belated,Rs.12000 for 1 year belated with the maximum Of Rs.12000 or Rs.20000 and so on. This will be very helpful to the deductors.