India Inc. on Wednesday demanded from the government that tax exemption limits for senior citizens and salaried employees should be raised substantially for a demand push to the economy. "Senior citizens and salaried employees are particularly affected by rising prices of essential commodities and deserve relief. This would not only give a push to the consumer demand but also promote personal savings," Assocham President Sandeep Jajodia told Finance Minister Arun Jaitley.
Corporate tax should be reduced to 25 per cent as committed by the government earlier, said Mr Jajodia in pre-budget consultations with the finance minister.
Assocham also called for a reduction in Dividend Distribution Tax rate, the tax imposed by the government according to the dividend paid by a company.
The industry body demanded that the government should involve active participation of trade and industry to simplify the process for smooth transition to the goods and services tax (GST). GST compliance procedures have adversely affected business activities, particularly among the small and medium enterprises and even some large industry segments like textiles, Assocham said in an official release.
Government must also fix accountability of tax administrators, the statement added.
In case of bankruptcy and insolvency scheme, implementation waiver amount due to sale of assets, transfer of business or part thereof, change in capital etc should be made tax neutral, Assocham said.
Tax attributes like losses / depreciation / allowances should be allowed to be carried forward in the hands of a successor as long as the terms of implementation are followed, it added.