Raipur, CG: State President, Chhattisgarh Chamber of Commerce and Industries (CCI) Amar Parwani on Wednesday said a letter giving suggestions related to income tax for the general budget has been sent to the Union Finance Minister.

Parwani states that the suggestions related to income tax received from industrial and business organizations are as under section 269A/269J, the limit for city loan/deposit transactions, which is currently only Rs 20,000, should be increased to Rs 2 lakh.

Under Section 40 (3) the limit of cash buying and selling which is currently Rs 10,000 should be increased to Rs 2 lakh.

Now depreciation will not be available on purchasing machinery, two-wheelers, four-wheelers and fixed assets (more than Rs 10,000) in cash. Whereas it would be better to keep it as before.

According to the provisions of the Income Tax Act, an amount of more than Rs 2 lakh or more cannot be taken in cash in exchange for transactions in a single day after April 1, 2017. This will restrict cash flow in the business industry.

The others are in case of salary income, standard exemption of Rs 50,000/- should be increased to Rs 2,00,000. The provisions under which 50 percent profit is declared should be amended to 30 percent. Swapping charges on credit card and debit card transactions should be completely waived off to promote digital transactions. The interest exemption on housing loans is Rs 2,00,000 and should be increased to Rs 4 lakh.

Just as long term profit on sale of capital assets gets set off on buying a residential house, similarly, investment in purchasing plant and machinery for new industries and expansion should get set off benefit. It is not appropriate for the builder to levy tax on notional rent after 12 months.

There is exemption for deduction on bank interest up to Rs 40,000/50,000 and on other interest up to Rs 5,000. It would be justified to increase this limit to Rs 1,00,000.

The income tax rate in partnership firms which is currently 30 percent and 22 percent in companies should be reduced to 20 percent, he added.

The traders who have been under scrutiny for 3 consecutive years should be exempted from scrutiny in the next year, currently there are many traders who have been under scrutiny for 10 consecutive years.

The rate of DST should be reduced from 15 percent to 10 percent. Capital gain should be calculated on the actual price and not on the stamp value.