Budget 2023: EY expects rationalised TDS framework, concessional I-T regime
On the personal income tax side, the government should give low- and middle-income taxpayers with yearly incomes up to Rs 20 lakh some relief, according to EY's budget wishlist
- Feb 1, 2023,
- Updated Feb 1, 2023 11:26 AM IST
The government is expected to give a more rationalised TDS framework to minimise the compliance cost for taxpayers, as well as a revised new concessional tax regime with additional perks such as standard deduction, Ernst & Young said.
On the personal income tax side, the government should give low- and middle-income taxpayers with yearly incomes up to Rs 20 lakh some relief, according to EY's budget wishlist.
The Budget, which will be published in Parliament on February 1, may also include the prospect of 'green' incentives, such as the tax exemption of interest from green bonds and the rationalisation of capital gains rates and holding periods.
Regarding Tax Deducted at Source (TDS), 31 sections of the Income Tax Act currently address various forms of payments made to citizens, with withholding tax rates ranging from 0.1 to 30 per cent, said EY.
"The government may provide a more rationalised TDS framework to reduce the complexity and compliance burden for taxpayers. There could be simplification in the TDS procedures pertaining to NR (non-resident) individuals," EY said.
Investment and production-linked incentives may be considered for strategic sectors that can strengthen 'sustainability' or lead to energy efficiency," EY added.
The government is expected to give a more rationalised TDS framework to minimise the compliance cost for taxpayers, as well as a revised new concessional tax regime with additional perks such as standard deduction, Ernst & Young said.
On the personal income tax side, the government should give low- and middle-income taxpayers with yearly incomes up to Rs 20 lakh some relief, according to EY's budget wishlist.
The Budget, which will be published in Parliament on February 1, may also include the prospect of 'green' incentives, such as the tax exemption of interest from green bonds and the rationalisation of capital gains rates and holding periods.
Regarding Tax Deducted at Source (TDS), 31 sections of the Income Tax Act currently address various forms of payments made to citizens, with withholding tax rates ranging from 0.1 to 30 per cent, said EY.
"The government may provide a more rationalised TDS framework to reduce the complexity and compliance burden for taxpayers. There could be simplification in the TDS procedures pertaining to NR (non-resident) individuals," EY said.
Investment and production-linked incentives may be considered for strategic sectors that can strengthen 'sustainability' or lead to energy efficiency," EY added.