Top industrial body pitches in budget recommendations

Hyderabad: The Union Government is to present its budget on February 1. The exercise to hold pre-budget discussion with India's top industry body Confederation of Indian Industry and other bodies gave their recommendations to the Union Government.

The Federation of Telangana Chambers of Commerce and Industry (FTCCI) urged the Union Government to introduce social security measures for taxpayers suggesting bringing of Tax Payers Guarantee Fund and Aayushman Medical Benefit.

According to FTCCI president Anil Agarwal, the Federation in its pre-budget memorandum on direct taxes 2023-24 sent to the Union Finance Minister suggested that the honest tax payers contributing to exchequer should be taken care of during distress more so in the absence of social security. For that he said a taxpayers guarantee fund of 20 per cent of tax paid by them with matching contribution of equal amount by government should be created.

He said that out of this fund money should be made available at lower rate of interest repayable in EMIs. This would encourage many young upcoming assesses to pay the taxes honestly and all the tax assesses be extended the Aayushman Medical Benefit scheme.

Anil said increase in income exemption limit would result in generating more surpluses in the hands of the tax payer with consequential boost to invest and growth. They also suggested that the family pension be treated on par with other pensions and taxed under the head income from salary/pension.

The Federation urged the Centre to remove the limit on investment under section 54EC from Rs 50 Lakh per assessee. There should not be any TDS from payment of interest to senior citizens. A ceiling for Health Insurance premium along with deduction for medical expenses for senior citizens as per the provisions of section 80D should be increased to Rs one lakh, Agarwal said.

The Federation wanted the Centre to give incentives to the exporters for export of goods and services to encourage the exports. It is suggested to restore the earlier provision of 80HHC under Income Tax Act with emphasis on MSMEs which are meant for 'Make in India' and 'Made in India'.

The Federation also requested the Centre to exempt tax on compulsory acquisition of property as declared under Land Acquisition Act 2013 by way of amendment in the Finance Act.