APN News

  • Wednesday, February, 2024| Today's Market | Current Time: 04:35:00
  • •            The FM to continue to promote policies that are conducive to growth and to make further changes which promote ease of doing business in India.

    •            The budget expectation focuses on bolstering India’s manufacturing sector, positioning the country as an attractive alternative to China. The proposal suggests extending the favorable tax rate of 15% for new manufacturing companies beyond the initial sunset clause, aiming to sustain and enhance the momentum gained, especially in comparison to other successful examples like Apple and Foxconn setting up bases in India.

    •            The budget is anticipated to include an extension of the lower tax rate provision for new manufacturing companies for at least 5 more years beyond the current sunset clause, in order to encourage and support the continued shift of global manufacturing to India.

    •            The budget expectation emphasizes the need for urgent and legally mandated redressal of the slow progress in disposing of appeals at the first appellate level. The current situation, where Non-Disposal of Appeals by CIT(A), has resulted in a backlog, locking up funds from taxpayers’ 20% deposits and withholding revenues due to the tax department. There is a call for swift action to address this issue.

    •            The budget is expected to address the increased compliance burden on taxpayers related to the payment of TDS and TCS. The proposal suggests a rationalization of these provisions to reduce the compliance burden without impacting tax revenues. The aim is to streamline the process and minimize the involvement of those deducting taxes in unnecessary litigation, especially since they are essentially collecting taxes on behalf of the revenue.

    •            The budget expectation centers on the introduction of domestic laws aligning with the OECD’s Two-Pillar Approach. The enactment of these provisions in the upcoming budget is highly anticipated and closely watched by the international community.

    •            The anticipation is for the budget to emphasize and provide a clear direction on expediting the disinvestment program, leveraging the strong performance of PSUs and the positive momentum in PSU shares on the stock exchange.

    •            The GIFT City initiative of inviting Family Offices to be set up is yet to reach fruition pending final RBI approvals. The flip flop on this count needs to be addressed.

    SEE COMMENTS

    Leave a Reply