PHDCCI calls for tax reduction

The taxpayer is burdened with this high tax rate where 40 per cent of his/her income goes to the government and the balance 60 per cent is left for self-consumption, the chamber said.

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Industry body PHD Chamber of Commerce and Industry (PHDCCI) Wednesday made a case for substantially reducing the income tax rates for individuals earning upto ₹50 lakh annually, and levying the highest rate of 30 per cent only on those earning more.

The highest tax rate of 30 per cent is levied on individuals earning more than ₹24 lakh in a year in the new income tax regime.

In its pre-Budget recommendations submitted to Revenue Secretary Arvind Shrivastava, besides a raft of reforms in the direct tax regime, the industry chamber also made several recommendations on the indirect taxation front.

‘The government has started the process for the presentation of the next Union Budget. Finance Minister Nirmala Sitharaman is scheduled to present it to Parliament in February.

One of the major suggestions on the direct taxes front is “request for reduction in rates of taxation for individuals, partnership firms and limited liability partnership”.

PHDCCI said the corporate tax rates have been reduced to 25 per cent, including surcharge.