Lucknow – A “Pre-Budget Discussion” was held at the Uttar Pradesh Adarsh Vyapar Mandal’s state office on Ayodhya Road. The event brought together senior members of the organization, traders, industrialists, chartered accountants, and tax experts to discuss and draft proposals for the upcoming Union Budget. The outcomes of the discussion will be compiled and sent to the Union Finance Minister via email.
Key Demands from Traders:
- Simplification of Income Tax System
Traders highlighted various challenges in the current income tax structure and emphasized the need for simplification. They stressed the inclusion of a ₹2 lakh interest benefit on housing loans under the new tax regime, akin to the old system. - Reforms in Faceless Tax Scheme
- Cases with disputed tax below ₹50 lakhs should be heard within their judicial jurisdiction.
- Taxpayers should be allowed personal physical appearances to resolve issues such as server limitations and language barriers.
- The current file upload limit of 10 MB should be increased to enable the complete submission of accounting records.
- Reduction in Tax Rates for Firms
- The tax rate for LLPs and partnership firms, currently at 30%, should be reduced to match the corporate tax rate of 22%.
- The cess rate of 3% should be reduced to 1%.
- Adjustments in Tax Slabs and Policies
- Increase the current limit of Section 44AD from ₹2 crores to ₹5 crores and reduce the tax slab from 6-8% to 4%.
- Exempt long-term capital gains on shares and mutual funds up to ₹5 lakhs, compared to the current limit of ₹1 lakh.
- Life and Health Insurance for Taxpayers
- Provide health and life insurance benefits worth at least ₹10 lakhs to taxpayers proportional to their tax contributions.
- Support for MSMEs and Retail Sector
- Simplify MSME loans, which are currently challenging to obtain.
- Announce a Retail Trade Policy to protect small businesses and regulate the growing dominance of e-commerce.
- Incentives for Savings and Investments
- Increase interest rates on savings accounts to promote deposits.
- Lower commercial loan interest rates to support businesses.
- Enhanced Taxpayer Exemptions
- Increase income tax exemption limits to ₹15 lakhs and restructure tax slabs, ensuring the 30% slab applies only to incomes above ₹50 lakhs.
Additional Suggestions:
- Provide a standard deduction for traders with a turnover of ₹5 crores, similar to the ₹50,000 deduction given to salaried individuals.
- Implement policies to enhance the purchasing power of citizens.
- Present a budget that is easily comprehensible for the common man.
Key Participants:
Prominent attendees included Avinath Tripathi (Senior Vice President), Mohd. Afzal (State Treasurer), Suresh Singh (President, Sales Tax Bar Association, Lucknow), Shalini Roy (Chartered Accountant), Sachin Agarwal (Tax and Business Expert), and several industrialists and trade representatives.
The discussion concluded with a strong emphasis on the immediate announcement of retail trade and e-commerce policies to safeguard the interests of small traders in the face of growing challenges.
