The Tax Benefits in Budget 2008 are important aspects of the Financial Budget. The reliefs, rebates, and benefits offered by the Union Government help in increasing the investments in different industrial and service sectors of the country. This article deals with the proposed tax benefits in Budget 2008.
Tax Benefits in Budget 2008 will prove important, as it will help in increasing the investments in various sectors. The tax benefits, lowers the revenue of the Government and helps in the growth of different sectors by increasing the investments. The Finance ministry should also focus on better allocation of the financial resources to get the maximum benefit. In general, it is expected that the Tax. Benefits in Budget 2008 will help to lead the Indian economy to reach great heights.
The Pre-Budget Memorandum of NASSCOM suggests several issues:
- The Software Technology Park of India scheme should be continued till 2010
- The Large Tax Payer Unit scheme eligibility standards should be relaxed
- At present the companies paying an advance tax of ` 10 crores or above, are considered under the Large Tax Payer Unit scheme.
- To provide the facility of full tax credit by means of inculcating important victuals in the domestic laws
- To introduce a method of Advance Pricing Agreements on matters such as transfer pricing, to secure high tax revenue
- To refund the service tax paid for the export of information technology based software and other business process outsourcing applications.
The Confederation of Indian Industry (CII) budget suggestions 2008:
- Tax incentives should be provided for R&D on agriculture and other related sectors under Section 35(2AB) of Income Tax Act
- To abolish the surcharge on corporate taxes
- To abolish dividend distribution tax or lower the rate to 5 %
- To abolish MAT or the rate should be lowered to 5%
- To allow corporate restructuring by the means of tax benefits under Section 72A of the Income Tax Act
- To provide rebates to the exporters by means of introduction of deductions under the Income Tax Act, Section 80HHC to 80HHE
- To provide the health care services with tax benefits under Section 80 IA
- To provide reduction on custom duty of fuels to 5%
- To provide reduction of central excise rate to 14%
- To provide exemption of service tax pertaining to input services