NEW DELHI: A large majority of respondents from KPMG’s pre-budget survey of industry professionals think that the upcoming Union Budget will provide a host of sops to individual tax payers, with 85 per cent expecting a reduction in personal taxes.
According to the survey, conducted among 750 senior professionals, the fallout from demonetisation has only led to expectations of tax rate cuts increasing.
“The majority of respondents are expecting a reduction in personal tax. With no alteration in tax rates in the last budget, all hopes are pinned on the upcoming budget. Around 94.13 per cent opine that some relief will be provided to tax payers,” said KPMG.
Approximately 59 per cent also believe that an increase in income tax slab limits would be very beneficial. “However, 25 per cent expect an increase in the tax exemption limit to be better 16 per cent believe that re-introduction of standard deduction for salaried employees would be more beneficial,” added the firm.
On corporate taxes, the majority of respondents, believe that the decision to reduce corporate tax will be implemented through a budget announcement on February 1.
Meanwhile, indirect tax expectations revolve around the Goods and Services Tax. 49 per cent of respondents state that July 1, 2017 would be a realistic date to roll out the tax regime, but nearly 43 per cent believe that the implementation could be delayed even longer.
The majority, 82 percent, believe that the budget will curtail exemptions and concessions and rationalise the CENVAT credit regime to bring it in line with GST regime.
95 percent also think that GST will have a positive impact on the economy which could be on account various factors such as ease of doing business due to a simplified tax structure, elimination of cascading effect of taxes and a liberal credit regime.
91 percent also feel that the recent amendments to India’s bilateral treaties with Mauritius, Singapore and Cyprus have been fair and will reduce tax avoidance.
83 percent feel that the budget is going to enhance the scope of the equalisation levy.