As Finance Minister enters the parliament to present his 5th budget… These are the changes that I wish to see!
1. Personal Taxes
- Reduction in number of slabs
- IT exemption limit increased to Rs 3,60,000
- Top tax slab reduced to 25%
- Exemption for equity investment increased to Rs. 2,00,000
- Penalty on Income Tax evaders increased
- Announce final round of Voluntary Disclosure of Income Scheme
- No change in LTCG on listed equity investments
- No LTCG on startup investments that are held for over 3 years
- Farm income over 50 lakhs should be taxable
2. Corporate Taxes
- Flat tax of 25%
- Removal of exemptions
- Investment in qualified start-up funds (impact & seed) allowed from CSR allocation
- Dividend Distribution Tax reduced to 15%
3. Startups
- Increase Fund of Fund allocation to Rs. 15,000 crores
- Tax exemption for investing in SEBI registered start-ups funds; (1 crores for individuals, 5 crores for corporates)
- Removal of IT exemption scheme for start-ups
- Increase in allocation for CGTSME loan schemes
4. Power
- Removal of MAT on power projects
- Utilisation of Coal Cess to encourage rooftop solar projects & rural electrification
- Tax and other benefits for banks to lend to power projects
- Custom duty on import of solar panels.
Now crossing my fingers (but not holding my breath). Best of luck everyone!
12/2018
