Budget to Bring Reforms Towards Simplified Tax Regime: Survey

New Delhi: Indian businesses are hopeful that Finance Minister Arun Jaitley will introduce tax reforms in the upcoming Union budget to create a more simplified and litigation-free tax regime in order to enhance the ease of doing business in India, according to a survey.

As per Grant Thornton's Pre-Budget Corporate Expectations Survey - 2016, the upcoming budget will bring tax reforms for minimisation of litigation in the country.

"While some big ticket reforms such as Goods and Service Tax (GST) may be mired in politics, one hopes that the government remains firm on its commitment to make India an attractive investment destination by targeted incentives," Grant Thornton Advisory director Riaz Thingna said.

Meanwhile, an overwhelming 96 per cent surveyed population expects introduction of tax holidays for start-ups in India and 88 per cent of the respondents expect tax incentives would be doled out in support of the government's Make in India campaign.

The survey noted that corporate India expects a maximum thrust on the start-up and manufacturing sectors, followed by infrastructure and defence.

As far as the expectations from the changes in tax rates are concerned, 59 per cent respondents expect the government to announce a reduction in corporate tax rates. More than half of the respondents (55 per cent) expect a rate cut for personal taxation as well.

On the indirect tax front, 56 per cent respondents expect that Goods and Service Tax (GST) Bill will be passed in the budget session.