NEW DELHI: Industry body Assocham has called for the need to "simplify
personal taxation
and reduce the number of
slabs
under the new (
income tax) regime."
In its pre-Budget 2021-22 memorandum, the Associated Chambers of Commerce and Industry of India stated that "the new slabs under the new regime of taxation are too many and complicated."
It also mentioned that the new structure should be simplified so that an ordinary person is able to understand and apply it.
The body also asked the Centre to "allow deductions up to Rs 5,00,000 for long-term government savings scheme, retiral benefits, life insurance, housing loans (principal + interest) and medical insurance."
Assocham cited that the "personal income tax structure has become complex over a period of time with constant tweaking and changes.
The industry body added the structure "should be more focussed on long-term investments" and called for removal of "deductions such as food coupons and LTA (leave travel allowance)."
Adding more to the
Budget wishlist, Assocham further stated that "the limit of deduction under
section 80C
should be raised from Rs 1,50,000 to Rs 3,00,000."
Union finance minister
Nirmala Sitharaman will present the Budget 2021-22 on February 1.
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