VIA gives suggestions to FM ahead of Union Budget
   Date :30-Nov-2021

chandak_1  H x
 
 
Business Bureau :
 
Ahead of the Union Budget 2022-23, the Vidarbha Industries Association (VIA) has given few suggestions on Direct Tax and other issues. In a letter to the Union Finance Minister, VIA President Suresh Rathi; Chairman of VIA Tax Forum CA Ashok Chandak; and Treasurer of VIA Naresh Jakhotia also urged the Union Finance Minister to consider the following:- To reduce the compliance burden of TDS /TCS of Quarterly return. Scrapping of TDS U/s 194Q and TCS U/s 206C(1H). Disallowance towards payment of PF/ESIC U/s 36(1)(va) in respect of employee contribution paid after the due date. The businessmen have numerous compliances to be done and are often stuck with temporary liquidity issues. Enhanced amount of TDS & TCS for Non-Filer of Income Tax Returns U/s 206AA & 206CCA. It is requested that the proposal may kindly be withdrawn.
 
VIA has also urged the FM to abolish the Income Tax Settlement Commission. On the issue of Faceless Assessment Scheme-2019, VIA said, “We appreciate the efforts of the present Government in implementing the faceless assessment scheme. We request that the concept of accountability may be established in the faceless assessment scheme whereby the penalty may be imposed on the assessing officer for error or intentional high pitched,” VIA observed. VIA has also highlighted the need for Amendment to Section 115BBE saying that tax rate for certain income u/s 68, 69, 69A, etc. was enhanced to 60% and the effective tax rate after surcharge is 78%.
 
“This rate was enhanced from 30% so as to take care of the malpractice during demonetization. It is requested that the pre-demonetization rate may be restored now and such special income may be subject to tax rate of 30% only,” said the association. In a letter to the FM, VIA further urged to enhance the tax audit limit from Rs 10 crore to Rs 50 crore Under Section 44AB. The leading body of the industrialists, observed the need for marginal relief in case of Rebate U/s 87A and amendment to section 43CA and 56(2)(x) where the stamp duty valuation of the property is higher than the Actual sale consideration. VIA felt that there should be an option to make a reference to the Departmental Value Officer (DVO) prior to execution of the transactions. An option of referring to the DVO at the instance of the taxpayers may also be incorporated in the Income Tax Act so that the buyer / seller can get the fair market valuation prior to execution of the transactions. VIA said that there should be exemption u/s 10(10D) if the premium exceeds Rs 2.50 lakh. ULIP is an excellent insurance option with the taxpayers.
 
There is already a ceiling of 10% of sum assured for investment in ULIP. The provision to restrict the amount to Rs 2.50 lakh is acting as a bar for investment in insurance cum investment options. Finally, VIA urged the FM to consider issues like benefit of carry forward of Excess Application of Income in case of Charitable Trust and appointment of the authority for disposal of the pending appeal under the Central Sales Tax Act 1956 in the upcoming Budget.