Budget 2022 Expectations: Restructuring of Income Tax, review of GST to Regulatory Authority for e-commerce operations - CAIT wishlist for 8 crore traders

Union Budget 2022: Only a few days are left before the Union Budget 2022. Union Finance Minister Nirmala SItharaman will present the budget this year on February 1, 2022. Ahead of the Union Budget 2022, the Confederation of All India Traders (CAIT) has put forward and explained the expectation of eight crore traders of India from the upcoming budget.

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Restructuring of Income Tax

The CAIT in its budget memorandum to Finance Minister submitted earlier has focused on the demand for restructuring of the Income Tax Act, tax rate relaxations for partnership firms & LLP entities, special deductions for work from home under the Income Tax Act, as per their release.

In addition to that, CAIT has also emphaised on the re-drafting of GST Act, replacement of all types of Licenses by one license, roll out of e-commerce policy having provision for regulatory authority, roll out of a national policy for retail trade, review of all types of laws and rules governing retail trade, restructuring of the pension scheme to traders, provision of Insurance to traders.

Also, it has put forward support policies for upgradation, modernisation and computerisation of existing retail trade of India to meet the Digital India vision of Prime Minister Narendra Modi.

While talking about the restructuring of the Income Tax Act, B C Bhartia, National President, CAIT pointed out that a Special Task Force may be constituted to re-design the Income Tax Act. He also said that the Rate of taxes for partnership firms and LLPs should be kept at par with corporate sector.

Bhartia further added that nowadays most companies want their employees to work from home. The employees have to incur additional expenditures for earning their salary income. So, a special standard deduction for salaried persons should be brought in to compensate for work from home. He also called for the increase in the limits for accepting and repayment of deposits from existing Rs 20,000 to at least Rs 50,000, similarly, the limit under section 43A(3)of Income Tax Act regarding expenditure done in cash limit should also be increased.

He pointed out that in view of the inflation, the business at retail level, the persons coming from villages to city for their purchases are required to make payment in cash. The limit of Rs 10,000 under expenditure and Rs 20,000 for loans and deposits are too short that needs to be increased.

Review of GST Act

Praveen Khandelwal, Secretary General, CAIT, called for a fresh review of GST Act on the basis of four years of experience both by the government and traders. Khandelwal pointed out that more than 1000 amendments in GST Act and rules over the last four years warranted a review of the GST tax system and need for crafting a simplified and rationalised tax structure.

Regulatory Authority for e-commerce operations

Furthermore, CAIT also wishes for an empowered Regulatiry Authority for the e-commerce operations. CAIT expressed hope that the Budget will provide ample opportunities for the traders for better business environment.