My Top 10 Interim Budget Wishes

As the time for Interim Budget 2024 approaches, here are my Top 10 Interim Budget 2024 wishes from NDA Government.

1. Allow Revision of GST Return:

Half of the problems in GST would disappear if the government allowed the revision of GST returns GSTR-1 and GSTR-3B. Currently, the GST returns can be amended but cannot be revised. Surprisingly, all the Returns Like Income Tax Returns, and returns of the Old tax Regime (Service Tax, Excise, VAT, etc.) can be revised but not GST Returns.

2. Good Amnesty Scheme For ITC:

We need a good amnesty scheme for availing of Input Tax Credit (ITC) especially in cases of FY 2017-18 and 2018-19.

3. Availing ITC in case where RCM has been paid and Timeline as per section 16(4) has expired:

There are many cases where Tax has to be paid under the Reverse Charge Mechanism and the due date for availing ITC has expired. This issue if not clarified; is going to give rise to unnecessary litigation in future.

4. Are Trading Entities included in definition of MSME for disallowance u/s 43B of Income Tax:

As per Section 15 of the MSMED Act payments to MSME should be made within the time as per the written agreement, which cannot be more than 45 days. If there is no such written agreement, the section mandates that the payment shall be made within 15 days.

Finance Act 2023 has inserted a new clause (h) in section 43B to provide that any sum payable by the Businesses to a MSME, beyond the time limit specified in section 15 of the MSMED Act 2006, shall be allowed as deduction, only on actual payment basis.

Now a suitable clarification is required to ensure that are Trading Entities included in definition of MSME for disallowance u/s 43B of Income Tax?

Also, a suitable amendment should be made to allow the deduction of payment to MSME made before the due date of filing ITR u/s 139(1).

5. Allowing Deductions of House Rent Allowance (HRA) and interest on Home Loan in New Personal Taxation Regime:

The government should make appropriate amendments in section 115BAC to allow HRA deduction u/s 10(13A) and interest paid u/s 24(b) for home loans taken in respect of self-occupied property in the new personal taxation regime.

6. Restoring TDS Rate for Fee for Technical service and Royalty to 10%:

The TDS rate for Fees for Technical Services (FTS) and Royalty was increased to 20% from 10% w.e.f. 1.4.2023. It is requested that the same should be restored to 10% for the inflow of technology to small businesses at lower costs.

7. Extend Due Date for Filing Income Tax Returns (ITR)

The deadline for filing ITRs for non-audit cases should be extended to August 31st, while the deadline for filing ITRs for audit cases and uploading TARs should be same, October 31st.

8. Applicability of GST on a receipt basis

In Service Tax Law, Individual and partnership firms were allowed to pay service tax on the receipt basis upto the value of Rs. 50 lacs. The same rules should be introduced for Professionals in the GST Era as well.

9. Suitable Guidelines for Document Requirement for GST Registration

It is a high time that Government should issue some suitable circular and guidelines for documentation requirements for GST Registration as it is seen that getting GST Registration has become cumbersome process among constant unnecessary demands of the Department.

10. Simplify Capital Gain Tax on Financial Asset

Income Tax on Capital Gains should be simplified introducing a uniform Tax Rate of 10% on all Long Term Capital Gain and 15% on all short term capital gains, irrespective of fact they are shares, listed or unlisted, debentures, or any other Financial Asset.

Also, one should have a single holding period for determining long-term or short-term for all financial assets to avoid any confusion.

Do add your Wishlist!