Pre-Budget Suggestions for Final Union Budget 2019 under Income Tax Act & GST

EXPECTATIONS FROM FINAL UNION BUDGET 2019 TO SMALL INDUSTRY & COMMON MAN

The Union Budget for 2019-20 will be presented in the Lok Sabha on Friday (5th July, 2019) at 11.00 am by newly-appointed Finance Minister Nirmala Sitharman.  Expectations from Union Budget 2019 are as below:-

A. Goods & Service Tax (Goods & Simple tax)

• GST Return filling needs to be simplified; only One (1) Return should be required to be filed on Monthly basis. All data capturing should be from that single return itself.

• In case of various Manual GST Refunds like Refund of accumulated Input credit etc should be processed on-line by updating GST portal accordingly or it needs to be simplified & should be processed in time bound manner.

• Auto sector is facing a severe cyclical slowdown owing to overall weaker domestic demand, slowdown in NBFC lending and weaker global demand. GST rate relief in this regard could help a lot.

• Rates of GST needs to be reduced

• Efforts should be done for Uniform GST rates in most of the cases so that similarity could be their.

• All goods should be brought within the preview of GST

B. Income Tax

• Companies with Turnover upto Rs. 250/- crore are taxed @ 25% where as for the other forms of business like Partnership firms the income Tax rate is still 30%. This benefit should be extended to partnership firms also. Large Number of MSME’s are operating as partnership Firms in India.
• Investment Allowance to a Manufacturing Company for Investment in Plant & Machinery so that make in India dream could be translated into reality

a. Deduction under section 32AC of the Act shall be allowed if the company invests more than Rs.25 crore in plant and machinery in a previous year

b. For MSME its limit should be reduced to 25 Lacs

• Exempted Incomes like Agricultural Income should be taxed if it is above certain limits like 10/- Lacs.
• Income Tax limits should be fixed highest personal tax slab should be restricted to 25%, it would help the proprietorship business firms a lot.
• Special boost for stat ups is required so that make in India dream could be translated into reality
• Currently, income up to Rs 2.50/- Lacs is exempt from personal income tax. Income between Rs 2.50-5.00 lakh attracts 5% tax, while that between Rs 5-10 Lacs is levied with 20% tax. Income above Rs 10 lakh is taxed at 30%. Rebate of Rs. 12,500/- is allowed if taxable income does not exceed INR 5 Lacs. In Place of Rebate, exemption should be allowed for Income above Rs. 5 Lacs.
• Deduction under Section 80C of I-T Act be raised from Rs 1.50 lacs to Rs 2.50 lakh to provide saving opportunities to public
• Hike in exemption limit for senior citizens is required.

TAGS – #SUGGESTIONS FOR FINAL UNION BUDGET 2019, #EXPECTATIONS FROM FINAL UNION BUDGET 2019 TO MSME & COMMON MAN,

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