Budget memorandum to Finance Minister

Narayan Jain , tax advocate, President of Calcutta Citizens’ Initiative has written in pre budget memorandum to Finance Minister Nirmala Sitaraman that Taxpayers expect reduced tax burden. The exemption limit should be increased to Rs.5 Lakhs, Tax slabs need to be reviewed. 5 Lakh to 10 Lakh 10 percent, from 10 Lakh to 20 Lakh @20 percent and above 20 Lakh @25 percent. There is no longer justification to continue Surcharge and Cess. FM will do well to do away the same for the sake of simplicity. It may be noted that the Govt does not justify as to how the education cess has been spent. After all providing education and medical facilities are duties of Govt. The tax under section 115BBE on unexplained cash credit/ loans as well as unexplained investment and expenditure used to be charged @30 per cent but was effectively enhanced to 75 per cent plus cess from the time of demonetization from Asst year 2017-18. Now it is high time to revert to rate of 30 per cent only. CA KN Gupta, Secretary of NGO said the tax structure should be simplified so that it is easier in tax compliance. The threshold limits for tax deduction and collection at source should be significantly revised upwards. TCS rate on foreign travel should be reduced to at best 5 per cent only.