BENGALURU: Federation of Karnataka Chambers of Commerce and Industry (FKCCI) recommended to Union Finance Minister Nirmala Sitharaman to increase the deduction allowed against interest on home loans from Rs 2 lakh to Rs 5 lakh as the interest component on home loans under even the Pradhan Mantri Awas Yojana (PMAY) scheme exceed the current limit of Rs 2 lakh. The Union Budget will be presented on Wednesday.
FKCCI president BV Gopal Reddy said that they had recommended many measures to enhance the ease of doing business and resolving many grievances of the industry, services and trade.
Tax holidays and special tax benefits to boost businesses in Tier 2 and tier 3 cities, a National Court for Direct Taxes for faster dispute resolution and reducing cost and permitting deduction of CSR expenses incurred by taxpayers pursuant to provisions of the Companies Act, 2013 under Section 37 in computing business income were some of the suggestions.
The trade and industry body suggested extending the benefit of presumptive taxation to Limited Liability Partnership (LP) companies; providing interest-free loans to MSMEs to help them in easing their capital requirement for purchasing new inventory, buying new equipment, expanding their business and modifying the existing grievance redressal mechanism by including an option to track the grievances and escalate such grievances online after a pre-determined lapse of time.
It also recommended re-introducing an amnesty scheme in line with the Sabka Vishwas (Legacy Dispute Resolution) (SVLDR) scheme to clear the backlog of erstwhile tax disputes of companies relating to service tax, central excise and customs; encourage investments into startups by levying lower short-term capital gains (STCG) tax rate instead of slab rate under section 111-A and giving minimum 15 days’ time to the assessee to respond to a tax notice under faceless assessment scheme.