Budget 2018: Managers want Arun Jaitley to align tax cycle to calendar year
A Deloitte survey of pre-Budget expectations of managers on personal income tax shows that most give a thumbs-up to aligning the tax year with the calendar year. Jurisdiction-free e-assessment of tax returns, a gradual reduction in personal tax rates in line with changes to the corporation tax structure and enhanced tax breaks for education of kids are among other key Budget 2018 demands from Finance Minister Arun Jaitley.
Indian managers are keen to align the tax year (April-March) with the calendar year (January-December), despite chances of initial hardships. In a survey of around 700-odd managers, a majority of respondents (84 per cent) want the Indian tax year to be changed from the financial year to the calendar year. A little over half (52 per cent) are in favour of bringing agricultural income under the tax ambit. Interestingly, one-third of the respondents (33 per cent) did not agree to tax on agriculture income. Close to two-thirds (64 per cent) of the respondents gave an equivocal thumbs-up to the concept of jurisdiction-free e-assessment. Eassessments are seen as part of the tax department's endeavour to expedite and simplify assessment proceedings, reduce the taxpayer's inconvenience and stamp out corruption. However, 20 per cent of the respondents believe that this move would not be beneficial. The remaining 16 per cent are not sure if this move would be of any help. ALSO READ: Budget 2018: Increase tax exemption limit to Rs 300,000, says SBI report In line with the gradual reduction of corporation tax rates for domestic companies from 30 per cent to 25 per cent, most respondents are in favour of a similar reduction in the tax ratesfor individuals from 30 per cent to 25 per cent. A majority of the survey respondents (86 per cent) are of the view that a similar reduction of tax rate should be given to individualtaxpayers. The survey noted that any reduction in the tax rate would place more money in the hands of end consumers, resulting in a boost for domestic demand.