F. No. 334/4/2017-TRU

Government of India

Ministry of Finance

Department of Revenue

Tax Research Unit

Room No. 244D, North Block

New Delhi, dated the 16th November 2017


Trade and Industry Associations

Subject: Suggestions from the Industry and Trade Associations for Budget 2018-19 regarding changes in direct and indirect taxes.


In the context of formulating the proposals for the Union Budget of 2018-19, 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 proposal. 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 suggestions that are either not clearly explained or which are not supported by adequate justification / statistics.

3. 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 exemptions 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

3.1 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.

4. Your suggestions and views may be emailed, as word document in the form of separate attachments, in respect of Indirect Taxes [Customs and Central Excise [for commodities outside GST)] to [email protected] and Direct Tax to [email protected] Hard copies of the Pre- Budget proposals/ suggestions relating to Customs & Central Excise may be sent to Shri Alok Shukla, Joint Secretary (TRU-I), and Service Tax to Shri Amitabh Kumar, Joint Secretary (TRU-II), CBEC, while the suggestions relating to Direct Taxes may be sent to Shri Rasmi Ranjan Das, Joint Secretary, Tax Policy and Legislation (TPL-I), CBDT . It would be appreciated if your views and suggestions reach us by the 25th November, 2017.

Yours sincerely,

(Rahil Gupta)

Budget Officer (TRU)

 Tel: 011-2309 5547


More Under Income Tax


  1. Ramprakash says:

    Dear Nirmala mam, nameste, I am a senior citizen, I am drawing pention… Why don’t you propose relaxation of income tax on pention.it may be a small favour,but,our blessings will be with you and party…

  2. ब्रजेश पाराशर says:

    मेरा सुझाव ये है कि PB-2 में चारGrade Pay सम्मिलित हैं
    1 4200
    2 4600
    3 4800
    4 5400
    इनमें से 4600 ओर 4800 में महज दो सौ रूपए का अन्तर है जो कि
    आज के समय में meeningless है, कृपया इसे ebolish किया जाए
    क्योंकि एक कर्मचारी 200 रू के लिए 20 साल काम करें ये सर्वथा अनुचित है।

  3. Dalpat Singh Ujwal says:

    Interest paid on personal loans/overdraft should be allowed to be deducted from salary income because interested earned on personal deposits is being added . Law allow equality in both( loan and deposit)sides.

  4. Dalpat Singh Ujwal says:

    Agriculture income in our country is fully exempted from income tax.
    It is necessary to protect small and medium farmers but there is no powerful logic for protecting big or very big landlords in income tax exemptions .

  5. Dalpat Singh Ujwal says:

    Income tax exemption limit for an individual with non working spouse and an individual with working spouse is equal. A family getting 5.00 Lac tax free and another family geting only 2.50 Lac tax free income.
    So, to encourage house wives for superior whole time upbringing of children an exemption equal to 2.50 Lac be allowed to such couples.

  6. Dalpat Singh Ujwal says:

    Earlier a Standard Deduction was allowed to Salaried Individuals but this Standard Deduction has now been discontinued.Expenses like depreciation of vehicle maintanence for job were covered under such standard deduction. As benifit of depreciation is still available for non salaried tax payers, we also demand either such benifit or reintroduction of standard deduction for salaried income tax payers.

  7. Dalpat Singh Ujwal says:

    The tax exemption benefits regarding retirement payments like leave encashment Gratuity* are not equal for government and non government/ PSU employees. Can we hope equal treatment for both under income tax law.
    Equality is well settled in Indian constitution and law.
    *Expected to be equal soon

  8. Dalpat Singh Ujwal says:

    The tax exemption benefits regarding retirement payments like leave encashment Gratuity are not equal for government and non government/ PSU employees. Can we hope equal treatment for both under income tax law.
    Equality is well settled in Indian constitution and law.

  9. sivadas says:

    Section 80C limit may be increased from Rs.2,00,000
    i) Additional Rs.50,000 towards Tution fees to provide better education to girl child (Save Girl child and Educate Girl child : our PM’s vision) in approved schools from Jr KG to Higher Education.
    ii) Additional Rs.50,000 towards Term Insurance Premiums, so the Social Security of the families, in case of death of the sole earning member, is taken care of and to promote Insurance habit among people for providing financial securty to their families.
    iii) Abolish Income Tax slab 5% and raise the IT Exemption limit to Rs.5 lakhs.

    iv) GST may not be applicable on Term Insurance Policy

    v) i)To bring down Speculative volatility in the market caused due to market participants selling shares held for more than 12 months by taking advantage LTCG exemption, retailer investors are suffering losses/value erosions in their long term portfolios.

    ii) Duration for availing LTCG shall be increased to 3 (three years) as against the existing more than 12 months holding period.
    iv) This shall be made applicable for investments held below three years by Individuals, Port Folio Management Services, Mutual Funds etc

    v) Any income of a mutual fund registered under the SEBI Act, 1992 is exempt from income tax under Section 10 (23D) of the Income Tax Act, 1961. Thus, any income generated by the fund through investments, either in the form of capital gains (short term or long term), dividends or interest is exempt from income tax.

    vi) Above provision be amended to exclude short term capital gains, as short term is speculation and every body should pay some Tax , so that Government could meet its Deficits.

    VI) Bring Restrictions for Promoter/Directors Salary in the case Loss making /NPA companies. Such cases monthly Salary of promoters/Directors shall not exceed the salary drawn by Secretaries, Government of India. This would ensure faster turnaround of the Companies.

    Payment of Salary, Wages, stipend, contract labour etc mandatorily to the Account of the employee/worker for claiming IT Deduction of business expebditure is necessary to eradicate exploitation of the poor by corporates in the organized and unorganized sector and for improving their standard of living/saving.

  10. S.V.Srikanth says:

    central government employees increment is fixed for everyone from 1st july to help smooth functioning of the accounts department concerned as such the retirement of the all central government employees to be fixed on 31st December of every year to help the calculating pension and other benefits etc

  11. Ramaswamy says:

    Government of India is spending hundreds of crores of rupees for supporting centrally-funded autonomous organizations under Ministry of HRD. One such organization is the National Institute of Industrial Engineering (NITIE) located in Mumbai. This institute is occupying 64 acres of prime land in the suburbs of Mumbai. If NITIE is disinvested, Government will earn at least 150 crore rupees. This money will be useful in reducing fiscal deficit.

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