Simplification and rationalisation of procedural aspect of taxation are among the salient demands made by the Mahratta Chamber of Commerce, Industry and Agriculture (MCCIA) in its pre-budget memorandum submitted to the finance minister.
The memorandum, prepared by Chandrashekgar Chitale, head of chamber’s taxation sub-committee, seeks abolition of bank cash transaction tax, restoration of standard deduction, removal of harsh provisions of the TDS norms and a complete withdrawl of the fringe benefit tax.
Pointing out that the rationale behind the bank cash transaction tax was to create a tax-trail on black money transactions through the banking channel, the memorandum said information can always be collected without imposing a tax.
The memorandum has demanded that to maintain the principle of deducting expenses from corresponding heads of income, standard deduction should be restored. Besides, the limit for deduction should be Rs 50,000.
The memorandum also sought removal of the provision that disallows deduction of expenditure of fees paid for professional services from an assessee’s income, unless tax is deducted from the fees paid.
The person deducting the tax at source and paying the amount is, in fact, doing a service to the government.
Thus to penalise him by refusing the deduction of the expenditure even for a small default is not justified, it stated.
Delay of even one day in filing of return of loss deprives benefit of carry forward of loss. This, according to the chamber, is a confiscatory provision, adding salt to the injury.
The memorandum has demanded that a total bar on carry forward be removed. The chamber has recommended increase in the value of asset that qualifies for 100 per cent deduction from Rs 5000 now to Rs 20,000. |
