INSUBCONTINENT EXCLUSIVE:
Ongoing pandemic has posed a lot of challenges for different stakeholders in the economy.The Union Budget 2022 is fast approaching and like
every year, India Inc and individuals are looking forward to the announcements in the Budget, especially on the tax front
To gauge the market sentiments and better understand the expectations from this year's Budget, Grant Thornton Bharat conducted a
81% of respondents expect that the third wave of the pandemic will not cause major disruptions and the economy will continue to grow in 2022
The survey also highlights that rationalisation of corporate tax compliances and certain tax relief to individual taxpayers are the top asks
57% of respondents chose personal taxation as the top area for reforms, followed by customs and GST which stood at 25%
Households adversely impacted by the pandemic expect some measures that would leave more cash in hand to bring some cheer amidst all the
gloom.69% of respondents expect that the government would increase the basic exemption limit applicable to individual taxpayers from the
Further, 90% of respondents feel that the government should either increase the section 80C deduction limit or the standard deduction in the
upcoming budget.Businesses expect rationalisation of corporate tax compliances to provide impetus to ease of doing business
This is also reflected in the survey results
39% of respondents consider an overall reduction in corporate tax compliance obligations as the key area that needs immediate attention from
a corporate tax standpoint.Further, a lot of time and effort is currently being spent by corporates to fulfil their TDS/TCS compliance
obligations which at times are also onerous
It is time to re-look at the TDS/TCS regime in India and make necessary edits, to ensure that while revenue's interest is protected, the
burden on the taxpayers is also reduced
The survey result also reinforces this sentiment
The majority of respondents feel that the government should comprehensively address the challenges faced by a taxpayer to rationalise and
out with an amnesty scheme for legacy indirect tax laws
Such a scheme will be beneficial for both the government as well as the taxpayers.On corporate taxation, 28% of respondents feel that the
reduced 15% corporate tax rate should be extended to all sectors (including the service sector) and should be linked with new investment(s)
The reduction in rate for all sectors will not only encourage further investment but would also lead to employment generation.Ongoing
pandemic has posed a lot of challenges for different stakeholders in the economy
pressures, no new taxes or surcharges should be introduced
The focus should be on rationalising compliances, making alternative dispute resolution mechanics functional and result-oriented, and
speeding up the implementation of announcements made earlier on various initiatives.More than 5,000 respondents participated in the survey
across digital platforms.(Disclaimer: These are the personal opinions of the author.)
