Hello Mumbai News Business Desk:
There are certain areas where the Economy is not gaining the expected growth. This needs to be reviewed, modified and executed.
A simplified tax regime is to improve compliance and enhance financial planning.
Some of them are:
- The limit on the premium for Savings plan where the Rs 5 lakhs limit is placed, Is to be reduced.
- All the items where the maximum GST is placed at 28% , to be reduced to a maximum of 20%
- A taxpayer experience should be seamless. The due dates of June 15 for Form 16 and the filing of IT Returns by July 31 , should be extended. Also, timely updates under Form 26AS, Annual Information Statement and Tax Information Statement can help smoother filing
- Turning taxes into tangible benefits
When a tax payer is consistent in paying tax, he/she expects Govt. to reward him/her to boost their morale, with benefits. These could be Priority services in Govt. offices, access to premium facilities; discounts like Vouchers, coupons for Govt. services like National Parks, Museums, Transport etc will help in increased taxes .
- Revamping Housing Loan Deductions
Home ownership is a significant milestone in a person’s life and taxes should be aligned with current realities. In that case, it is easy for home owners to shift to new tax regime, if they see a greater economic and financial stability. A well-structured tax relief based on current realities is important
- Making ESOPs taxability uniform for all organisations
Employee Stock Ownership Plans (ESOPS) is a popular tool for companies to employ and retain talent. Here, there is promise of future wealth ,without immediate cash outlay. However, tax implications can be a complex one; especially the timing of tax payments. Currently, the benefit of deferring tax payment on ESOPs to the stage of sale ( as against exercise stage) is available for employees of start-ups only.
There is an argument that this facility should be available for all employees for all types of organisations. ESOPs are not liquid assets till the listing happens ,after the public issue.
These are some of the tax changes that need to be brought in the 2025 budget.
