List of Some Suggestions Made by ICAI through “PRE-BUDGET MEMORANDUM – 2025”
DIRECT TAXES AND INTERNATIONAL TAXATION
– New head of income “B -Income from shares and securities” be inserted and all provisions relating to taxability of income therefrom, whether by way of dividend, interest or capital gains be covered
thereunder.
– Standard Deduction from salary income – Need for regular enhancement of standard deduction on the basis of cost inflation index as per the default tax regime
– Section 44ADA may be suitably amended to deem 33.33% of Gross Receipts from profession as “Profits and gains of business and profession”.
– Payment to partners in nature of salary and interest may be allowed as deduction from presumptive income computed under section 44AD and 44ADA, subject to the conditions and limits specified in section 40(b).
– Special provisions for computation of profits and gains of eligible assessees engaged in eligible business – F&O and Speculative businesses to be excluded from the scope of section 44AD
– Special tax regime be introduced which firms and LLPs can opt for and pay tax at concessional rate@22% (plus surcharge@10% plus cess@4%) on total income computed without specified deductions and exemptions.
Simplified return forms can be prescribed for such firms/LLPs/companies/cooperative societies opting for special tax regime.
– The due date for filing a belated and revised return under section 139(4) and section 139(5), respectively, be extended to 31st March of the relevant assessment year instead of 31st December. This will provide taxpayers with more time to reconcile information and correct any omissions or errors.
– The independent threshold u/s 194J of Rs 30,000 may be increased to Rs.1,00,000 considering the inflation factor
– If PAN is linked with Aadhaar on or before the due date of filing of return of income, then, the demand notices sent to deductors/collectors for “short deduction/collection of tax” be quashed