Our recommendations are important to put India at par globally: BCIC

Bangalore Chamber of Industry and Commerce sends budget recommendation to state finance minister via MP Surya

NT Correspondent

Bengaluru: The Bangalore Chamber of Industry and Commerce (BCIC), has through a budget recommendation to Tejasvi Surya MP Bengaluru south, has requested him to convey it to the state finance minister.

The said budget comprises a ten point agenda and recommendations which are inclusive of incentives and deductions, individual taxation, digital economy, international tax, transfer price, business recognition , capital gains, tax deducted at source, tax assessment, and tax administrative issues.

In a similar proposal by the BCIC the concept of ‘weighted deduction’ in the place of existing deduction was introduced, it pushed for the incentives in employment generation which was based on the additional employee cost to an extent of 150 percent per annum.

They also pointed out the minimum net increment of 75 or 100 employees which can be deducted to establish real employee generation. To lessen the chances of exploitation, the deduction can be restricted within some calculated parameters, BCIC has said.

“These recommendations are important to put India on global standard, there are efforts to be made in the budget for employment creation, “K R Sekar, former president of BCIC and partner, Deloitte Touche Tohmatsu India LLp said. The body has also proposed reduction of tax burden on angel investors by appropriately exempting granted investments made in respect to recognise start-ups.

They also urged the government to look for options like reduced tax rate for companies exclusively involved in research and development activities. For the long haul, they also recommended an individual taxation regime. This way, individuals have the option to select, making the tax rebate hassle free and prochoice.

This can help banter the intricate nature of the old regime and newer deduction assemblies. It was also suggested by the BCIC that individuals earning close to ten lakhs per annum get a tax slab of 10, 20, 30 percent, inclusive of earners earning up to Rs 15 lakhs and above. Amendments for Significant Economic Presence (SEP) were also recalled. Improvements in the Taxation of Virtual Digital Assets (VDA) were also mentioned in the document.''

With the economic scenario shaping up in India, and many companies pushing efforts in the field of research and development, it is commendable and gives room for opportunities, these suggestions curated by the chamber are recommendations that will help India and taxpayers to work hand in hand,” commenting on the contents of the report, president of BCIC Dr L Ravindran said.