Income tax relief is expected in the upcoming Budget for taxpayers in the lowest slab due to high inflation in the country, according to CII president Sanjiv Puri.
He also suggested the creation of an institutional platform for consensus building between the Centre and states to successfully implement reforms.
As per the old regime, the income tax exemption limit is up to ₹2.5 lakh for individuals, while under the new regime, the exemption limit is up to ₹3 lakh. In an interview with PTI, Puri said, We recommend that the simplification process should continue. There are certain suggestions regarding capital gains, which vary for different instruments. He expressed the concern whether these can also be rationalised.
He added that over time, as far as customs are concerned, we should move to a three-tier structure: primary at the lowest level, intermediates in between, and finished goods at moderate rates with some exclusions as deemed appropriate.
Regarding the upcoming Budget, he remarked that the focus should be on public capital expenditure, adherence to the fiscal glide path, investment in social infrastructure, a green fund, and greater investment in the rural sector.
This discussion comes as India’s wholesale price index-based inflation rose for the third consecutive month to 2.61% in May on a year-on-year basis, up from 1.26% the previous month, according to the commerce ministry. RBI Governor Shaktikanta Das mentioned that the central bank may consider “further policy actions” if headline inflation remains at 4%.
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