MARCH 15, 2012
Some suggestions for BUDGET 2012
By M Ravikannan Sr. Manager - Taxation Scope International Private Limited
1. Exemption u/s. 10A / 80 HHC should be restored considering the present economic recession.
2. DDT & MAT rate should be caped maximum at 15% (including surcharge & cess).
3. Clear mandates should be given for TDS assessments & refunds and if possible online TDS clarification facilities should be provided in the CBDT site.
4. Online filing of Wealth Tax return can be made or can be linked with Income Tax Return itself.
5. Like provision provided to Income Tax department to adjust the prior period demands against the current tax refund, options should also be given to the assessee to adjust the refunds against the current tax liability.
6. Individual tax exemption slab to be increased to reasonable level – at least upto Rs. 3 lakhs & peak tax rate for individuals should be restricted to 25% only & deduction u /s. 80C should be increased to Rs. 2 Lakhs.
7. Reasonable Standard Deduction for Salaried class should be restored. At least exemption for Bonus payment with some slab limits can be made. Further similar to most of the foreign countries tax laws, additional tax allowances can be provided for married assessees.
8. Present Children Education Allowances (Rs. 100 p.m.), Transport Allowances (Rs. 800 p.m.) & Medical Reimbursement (Rs. 15 K p.a.) exemptions to be increased to reasonable level considering the present standard of living. At least Children Education Allow. (Rs. 1k p.m.), Transport Allowances (Rs. 2k p.m.) & Medical Reimbursement (Rs. 25k p.a.) can be made.
9. Present LTA exemption provision is really cumbersome – Should remove the Calendar year and block of two year concepts . It has to be allowed for every FINANCIAL YEAR, which indirectly promotes the tourism industry also!! Further Foreign Travels can also be included with reasonable limit & with a condition if Indian airflights are used!!
10. Exemption / lower rate of Service tax / Excise Certificate provision (like in Income Tax u/s. 197 ) can be provided in Service Tax / Excise especially for Exporters in order to reduce the issues in Service Tax Refund claims .
11. Clear guidances / adherence for Service Tax audits, assessments & Interest for delay in Service Tax Refunds to be provided
12. Regular expansion of services in Service tax really hurts the common man. So reasonable concessions to be provided at least for individuals on Service Tax levies.
13. In most of the tax appeals, both the assessees and department are not adhering to the order of Commissioner of Appeals Orders (Direct & Indirect) and further goes for next level of appeal (ITAT / CESTAT) followed by High Court & Supreme Court verdict, which becomes a lengthy and regular time consuming process. So to reduce the appeal process time, at least the protocol of first petition to Commissioner Appeals can be removed or Government should provide rigid time frame for appeal verdicts!!
14. Online PAN free verification should be provided by CBDT. At present CBEC provides free online Service Tax No. verification and similarly VAT - TIN verification was also provided in most of the department tax sites, which is useful to the assessees for cross verification.
15. Option to amend Form 15CA (prepared u/s. 195 of the Income Tax Act) generated should be given. Because at present, if any errors are found after generating the Form, again we need to retype all the details and new reference number is generated, which in future might lead to some recon issues with the department.
16. Acceptance of normal post/speed post of ITR V only by CPC, Bangalore creates lots of hazards to the assessees. So acceptance of Courier / Registered Post should also be made.