Tax Payers are expecting a lot of support in order to recover economically and to proceed gradually from the impact of Covid-19. Corporate tax rates for new manufacturing units were reduced to 15% in the past and in some cases exemptions provided in tax returns filing, eliminating DDT (Dividend Distribution Tax).
* The responsibility of tax discharging was on dividend payers and companies operating in IFSC were exempt from the applicability of DDT. Again it has been changed due to regime and made the recipient responsible, which warrants to restore the status quo, an exemption be extended to the dividend income in the case where the dividend has been declared by a company operating in IFSC.
* Instead of making the corporations tax liable for Vaccinations to employees and their families, PPE (Personal Protective Equipment)kits, sanitizers, doctor consultations, they are expecting that it will be considered as a CSR (Corporate Social Responsibility)
* Demanding rationalization of safe harbor, by reducing rates to get popularity and in order to expand coverage, turnover thresholds should be enhanced and see that Transfer Pricing laws sync with the Global pricing laws.
* The Government should interact with the public while implementing those things that have effect on each other as Equalization Levy 2.0 is applied on digital platforms for sale of goods or services online. As India is an active participant of OECD‘s (Organization for Economic Co-operation and Development) Two Pillar Framework.
* Allowing depreciation on goodwill arising from transactions that are taxable in those sales where the transfer of one or more undertakings as a result of the sale for a lump sum consideration without values being assigned to the individual assets and liabilities.
* Requesting the Government to reduce the tax rate on LLP (Limited Liability Partnership) firms and Partnership firms as it was done in Corporate’s tax rates and to rationalize the same for foreign companies so that India becomes the good choice while investing.
They explain that a decrease of tax rates can increase consumption and that raises demand and that can show the way to produce much more and in order to do that more resources required and which means jobs will increase and again a family income increases and since current income (GDP) is an important determinant of consumption, the increase of income will be followed by a further rise in consumption. Let’s wait and watch whose expectations will be met.