India Inc with FM – Budget Wish List
Captains of Indian Industry demanded a slash in tax rates from the FM at a pre-budget meeting yesterday. The wish list includes
1. IT exemption limit for individuals should be raised to Rs 1,50,000 from Rs 1,10,000 and the peak income tax rate be cut to 25 per cent, from 30 per cent at present.
2. Removal of 10 per cent surcharge on corporation tax
3. Bringing corporation tax rate to 25 per cent from 30 per cent.
4. A tax rate of 20 per cent on income up to Rs 5 ,00,000 and 25 per cent over Rs 5,00,000.
5. Infrastructure industry status for hospitality and renewable energy.
6. Additional deduction limit of Rs 1 ,00,000 for long-term investments such as life insurance premium, pension and annuities.
7. Tax benefit to standalone R&D companies in the pharmaceutical sector.
8. Cut in excise duty rate from 16 per cent to 14 per cent.
9. Extension of tax benefit for IT and software beyond 2009
10. Removal of dividend distribution tax.