With a view to removing the slowdown in the economy, Indian companies are expected to cut the rates of personal income tax in this upcoming budget to increase demand and consumption. Apart from this, companies say that to increase the demand, personal income tax should be reduced now. Also, a pre-budget survey has revealed this. It is being told that the government had made major cuts in corporate tax last year.
The government had reduced the rate of corporate tax by 25 percent for old companies and 15 percent for new companies coming into manufacturing. The survey was done by KPMG, which included 215 companies. According to the survey, most people expect the government to increase the income tax exemption limit in the budget beyond Rs 2.5 lakh annually. For your information, let us know that in the budget of the current financial year, the taxable income up to five lakh rupees has been tax free.
According to the survey, most companies believe that the tax rate for foreign companies should also be reduced. Those in the survey believe that the government may take steps to encourage home loans in the upcoming budget. Those present in the survey believe that the income limit that comes in the tax rate of 30 percent can also be increased in the upcoming budget. In addition, nearly half of the people present in the survey said that the benefit of tax exemption given to SEZ units for export can also be given to units after March 2020.
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