NAG Vidarbha Chamber of Commerce (NVCC), apex body of more than 13 lakh traders in Vidarbha has recently submitted a pre-Budget memorandum to the Finance Ministry.
In the memorandum, Ashwin Prakash Agrawal (Mehadia), President of NVCC urged the Government to announce a relief package for small and medium traders in the upcoming Union Budget 2022-23 which will be presented by the Finance Minister in February.
He said that the Government has fixed the rate of Income Tax at 25% for small companies and for partnership firms at 30%. The Government should reduce the Income Tax rate to 25% for partnership firms like small companies. Under the provision of Income Tax 44AD, the partners in a partnership firm should be entitled to exemption from Income Tax on their remuneration and interest from the firm.
Arjundas Ahuja, Vice-President said that it has been a long standing demand of the Chamber that the tax limit on individual income be enhanced. Keeping in mind the interests of small and medium businessmen and salaried persons, the annual income up to Rs 5 lakh should be fully exempt from Income Tax and rate of 10% should be fixed for annual income above Rs 5 lakh up to Rs 10 lakh.
Farooqbhai Akbani, Vice-President said that sometimes due to wrong assessment by the Assessing Officer, the taxpayer has to face a lot of trouble. In such a situation, the assessing officer and the department, accepting the responsibility of wrong assessment, should compensate the taxpayer for the financial and mental suffering.
Ramawatar Totla, Secretary said that interest under section 234A, 234B and 234C is imposed on tax payer when there is delay in filing Income Tax Return. The business community is going through a challenging phase and do not have liquid cash in hand.
“Due to the coronavirus pandemic, the general public and traders are facing a lot of difficulties in making payment of advance tax. As a result of which a huge amount of interest has to be paid by the tax payers,” Totla further said.
Therefore, keeping in mind the economic slowdown along with the current pandemic the Government should give relief to the general public and traders by re-assessing the rates of payment and interest under provisions 234A, 234B and 234C, he pointed out.
CA Sandeep Jotwani, Convener of the Direct Tax Committee said that currently the rate of Minimum Alternate Tax (MAT) and Alternate Minimum Tax (AMT) is 18.5% which is very high. Government should give relief to industries and traders by making changes in the provision of MAT and AMT. Apart from this, to encourage savings, the Government should increase the limits in sections 80C and 80D.
CA Ritesh Mehta, Convener of the Indirect Tax Committee said that there are instances of double taxation on single transaction. Therefore, necessary changes should be made in 50C, 43CA and 56(2) of Income Tax Act,” he noted.
Sachin Puniyani, Treasurer said the Government should announce a relief package like it does for the farmers and the working class.