Budget 2023 highlights: The FM can bring another tax amnesty proposal on the lines of Vivad se Vishwas scheme to help reduce litigation burden and aid revenue collection in the next fiscal.
Taxpayers who are embroiled in litigations and appeals could be asked to pay the disputed amount along with 10-20% penalty to settle the cases, reports said. It may propose amnesty with a penalty of 10 percent on the disputed tax amount if the matter is pending with the Commissioner of Income-Tax (Appeals).
Not populist Budget?
The chances of Nirmala Sitharaman going for a blatant populist budget looks bleak amid moderating tax revenue, high committed revex, and market loans, Emkay Global Financial Services has said in a report.
On the revenue side, lower tax buoyancy could be partly countered by higher RBI dividend and still-healthy assumption of divestment proceeds.
Emkay says Budget faces acute policy trade-offs between nurturing a nascent growth recovery and diminishing fiscal space with challenging debt dynamics.
Rationalised TDS, more tax benefits
The Budget may give a more rationalised TDS framework to reduce the compliance burden for taxpayers, apart from a revamped concessional tax regime by providing additional benefits like standard deduction. Tax experts believe, Nirmala Sitharaman may provide some respite to low- and mid-income taxpayers with annual income up to Rs 20 lakh on the personal income tax side.
Uniformity in capital gains rates
There are chances of 'green' incentives to be brought in such as tax exemption to interest from green bonds and rationalisation of capital gains rates and holding periods could be expected in the Budget, to be unveiled in Parliament on February 1.
Budget expectations blog
