The Finance Minister Nirmala Sitharaman and the PHD Chamber of Commerce and business (PHDCCI) discussed the pre-budget proposals for 2024–25. During their conversation, the business group emphasized the importance of personal taxes for the average individual.
The PHDCCI has recommended FM to save the middle class from the thirty percent tax rate, among other things.
"The middle class must be spared from the 30 per cent tax rate and this rate must be applicable only to those with taxable income above Rs. 40 lakh, this will support consumption demand in this country" , Sanjeev Agrawal, president of the PHDCCI.
In order to increase the manufacturing component of the GDP, he also stated that the government should keep the corporation tax rate at 22% for already-existing businesses and 15% for newly established manufacturing enterprises from October 1, 2019.
The income tax slab for individuals under the new tax regime is as follows:
The Recently Introduced Tax Slabs
Up to Rs 3 Lakh- NIL
Rs 3 to Rs 6 lakh- 5%
Rs 6 to Rs 9 lakhs- 10%
Rs 9 to Rs 12 lakh- 15%
Rs 12 to Rs 15 lakh- 20%
Over Rs 15 Lakh- 30%
The Interim Budget, which was presented in Parliament on February 1st of this year by Finance Minister Nirmala Sitharaman, did not alter the income tax bracket.
The industry group has recommended ten changes.
1. Additional changes to raise manufacturing's GDP contribution to 25% by 2030.
2. Add more labor-intensive industries to the PLI system, extending its reach beyond the current 14 sectors.
3. An extension of the 90-day restriction on MSMEs' NPA classification norms to 180 days.
4. Making direct taxes more reasonable for the middle class.
5. Pay more attention to tier 2 and tier 3 cities with cutting edge infrastructure and smart villages that have sufficient public utility facilitation.
6. The current business tax rate structure.
7. To increase R&D activities in the nation, strengthen university-industry links.
8. Lower operating expenses, such as those related to capital, electricity, logistics, land, and compliance.
9. To increase the industry's competitiveness, put the four labor codes into effect throughout the states.
10. To lessen the impact of inflation, reinforce supply chains and deal with the shortages of essential food goods.
