Coimbatore

Chamber seeks changes in tax rates

The Indian Chamber of Commerce and Industry, Coimbatore, has sought revision of rates under various sections of direct taxes and measures to simplify the compliance procedures.

Memorandum

In a memorandum to the Central Government, the Chamber demanded reduction of Income Tax and revision of Minimum Alternate Tax and Dividend Distribution Tax.

In order to enhance the net disposable income in the hands of individual taxpayers, the basic exemption limit may be revised to ₹ 7.5 lakh or higher. The limit at which the maximum tax rate of 30 % is triggered should also be enhanced to ₹ 20 lakh per annum.

The enhancement is reasonable in view of the inflation and various expenses, the Chamber said.

It is necessary to revamp the return filing system in order to make the compliance easier and simple. This will also increase the revenue collection for the Government.

It also said that the Finance Act 2017 curtailed the time limit to file a revised return from the existing two year from end of financial year to one year from end of financial year. The deadline for filing a revised return should be restored to two years from end of the relevant financial year.

Under the GST, a new return system should be introduced based on the system under the erstwhile VAT laws in various States. The self-assessed return along with sales and purchase invoices for matching of invoices will reduce the compliance procedure and is easy to follow.

Payment of dues and filing of returns should be delinked. A registered person cannot file the return unless all the dues as per the return are paid. This system will lead to non-compliance as well as make other provisions of law such as instalment payments redundant.

Further, Stamp Duty should be rationalised at 5% across India in all the States and Union Territories, it said.

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Printable version | Mar 7, 2021 6:33:23 PM | https://www.thehindu.com/news/cities/Coimbatore/chamber-seeks-changes-in-tax-rates/article33652050.ece

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