The Finance Minister should consider abolishing 10 per cent surcharge on corporate tax and withdrawing the stiff 16.995 per cent dividend distribution tax, which is in addition to the corporate tax of 33.99 per cent.
We hope that the service tax paid on input services for export of IT and ITES would be refunded.
STPI scheme should be continued beyond 2009. FBT (fringe benefit tax) on ESOP should be abolished. The earlier scheme of taxation on ESOPs should continue or, alternatively, employees should be allowed to set off the FBT against capital gains tax on sale of shares or tax payable on total income.
N. Ramachandran, CFO, iGATE, Global Solutions
Do justice to the salaried class
Either revive standard deduction with maximum limit Rs 50,000 or grant adequate deduction for vehicle expenses, books and journals, cost of continuing education, entertainment expenses. Monetary limits for gratuity, commuted pension, house-rent allowance exemption should be revised upward keeping in view the inflation factor. Awards for innovation, creativity and best performance should be declared tax exempt.
Prof N.M. Khandelwaal, Director, Department of Management, Atmiya Institute Tech & Science, Rajkot.