Surat: Eminent tax consultant from Ahmedabad, Mukesh Patel, said that the Union Finance Minister did not have the money to offer to the tax payers and that all her tax proposals were by and large tax revenue neutral.
Patel was speaking at the post-budget analysis session organized by the Southern Gujarat Chamber of Commerce and Industry (SGCCI) at Surat International Exhibition and Convention Centre (SIECC) at Sarsana.
“The only thing that people were worried was the corona cess. But, the FM did not impose the cess, giving a big relief to the public. Apart from that, this budget had nothing to offer to the tax payers, no relief or tangible monetary relief. Individual tax payers are highly disappointed,” said Patel.
The exemption for senior citizens above 75 years from filing income tax returns has come with certain terms and conditions. “If you have only pension income, you are eligible for the relief. If you are having any other income from dividend deposited in the separate bank account other than the pension account, then you are not eligible for the benefit. Patel said, “The FM has given concession to the real estate developers providing affordable rental housing scheme to the migrant workers. It is a welcome measure by the FM and will boost the rental housing. system.”
He added, “The tax audit exemption limit has been raised from Rs 5 crore to Rs 10 crore for those who are doing 95% of them business digitally or through banks. This is going to benefit the MSME sector provided they are performing all the transactions digitally or through cheques.”
According to Patel, the new I-T section 194(q) and 206(A,B) will have a larger implication on the trade and industry. The seller will have to straight away deduct 0.75% on TDS on the purchase volume of more than Rs 50 lakh. The seller will have to ask the purchaser to furnish his preceding two years of I-T returns. “This is a failed exercise of bringing the more and more traders and industry people who are not filing I-T returns under the tax radar. This is a very disturbing provisions and will have a larger impact on the privacy of the personal income tax filing by the individual tax payers,” said Patel.