Budget 2020-2021 Wishlist
- Current basic tax exemption limit is 2.5lac it should be increased to Rs 4.5lac per
- Section 10(32) Amendment: At present income of minors included in the hands of parents is exempt to the extent of Rs.1, 500/- for each minor. It is suggested that this should be raised to at least Rs. 10,000/- for each minor child.
- Fee on Incorporation of a Company is allowed as deduction u/s 35D as per specified limits in 5 Instalments, however amount paid for increase in authorized capital is not allowed as deduction at all, though the amount is paid to government as a fee. It is suggested that fee paid to Registrar of companies for increase in authorized capital may be allowed as revenue expenditure in 5 equal instalments u/s 35D
- Section 44AD relating to presumptive taxation applies only to businesses run by residents Individual, HUF and Firms excluding LLP. The benefit of section 44AD should also be made available to LLP
- The annual limit for contribution to PPF be increased to Rs. 3 lakhs from the present ceiling of Rs. 1.5 lakhs.
- Section 80TTA relating to deduction of up to Rs. 10,000/- in respect of interest on saving account, limit shall be increased to 20,000/- and interest on deposits may also included in the scope of section 80TTA.
- In current situation of pandemic people will invest more in Insurance and Health check-up So, Section 80D relating to deduction provide Maximum of Rs. 25,000/- for insurance and Medical health check-up. The ceiling of Rs. 25,000/- shall be increased to Rs. 35,000/-.
- In order to encourage small shareholders to invest in domestic companies, it is suggested to drop the requirement of grossing up the dividend distribution tax rate.
- Considering the Fees of education institution and Hostel amendment in Nature of allowance prescribed under Rule 2BB Such as
• Tribal Area Allowances in specified states up to Rs. 200/- pm. It should be
increased up to Rs. 600/- pm
• Children educational allowance @ Rs. 100 p.m. per child, maximum of two
children. It should be Increased up to Rs. 1000/- pm, per child.
• Children hostel allowance @ Rs. 300 p.m. per child, maximum of two children.
It should be Increased up to Rs. 1000/- pm, per child.
- Huge investments are taking place in manufacturing and infrastructure companies. Project authorities should proactively implement stricter norms of measurement and compliance while granting ’mega-status’ benefits. This is to encourage faster migration to global standards of energy efficiency, pollution control, plant safety and product traceability. Plants should be rated by certification agencies as
• compliance by semi-automated measurement and control and
• compliance by fully-automated measurement and control and given 20%
additional depreciation for investments.
- There should also be due dates for providing utility by income tax department for