Sunday, 22 January 2017

Double Income Tax exemption limit, continue with corporate deductions: EY

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Government should double the basic I-T exemption limit to Rs 5 lakh per year and continue with incentives and deductions to corporate houses for stimulating consumption demand and propel private investment post demonetisation, a EY survey said.

In a pre-budget survey by tax consultant EY, an overwhelming 81.42 per cent of the respondents felt the corporate tax rate would be reduced to 25 per cent, from the present 30 per cent, excluding surcharge and cess. Budget 2017

In view of the push to 'Make in India', 72 per cent the survey respondents expected the government to continue with sector specific incentives/deductions.

However, majority of respondents felt that to reduce the corporate tax rate, it is imperative to phase out the tax exemptions to meet the fiscal target.

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