The 2015-16 Budget is likely to include major relief for individual taxpayers to boost savings as well as for companies to encourage them to invest in the country.
The contours of the package are still being worked out but it is likely that tax slabs or exemptions will be reworked for individuals and the corporation tax rate may be rejigged, officials said. The corporation tax rate now stands at 30 per cent and the rate has remained unchanged for the last seven years, tax experts said. Including surcharge and cess, the effective rate is around 33 per cent. The surcharge on corporation tax was reduced last year from 10 per cent to 5 per cent.
There are several companies who are relocating their operations to other countries because of the tax burden. Therefore, there is a need to provide some relief. Individual taxpayers also need relief
The government is keen to restart the investment cycle and deepen the manufacturing sector as part of its Make in India campaign. Therefore, it would prefer to have a predictable and easy tax structure that encourages firms to invest in the country.
The contours of the package are still being worked out but it is likely that tax slabs or exemptions will be reworked for individuals and the corporation tax rate may be rejigged, officials said. The corporation tax rate now stands at 30 per cent and the rate has remained unchanged for the last seven years, tax experts said. Including surcharge and cess, the effective rate is around 33 per cent. The surcharge on corporation tax was reduced last year from 10 per cent to 5 per cent.
There are several companies who are relocating their operations to other countries because of the tax burden. Therefore, there is a need to provide some relief. Individual taxpayers also need relief
The government is keen to restart the investment cycle and deepen the manufacturing sector as part of its Make in India campaign. Therefore, it would prefer to have a predictable and easy tax structure that encourages firms to invest in the country.