Budget 2015-16 : There may be Tax relief for Individuals and Companies
NEW DELHI: The 2015-16 budget is likely to include major tax relief for individuals 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% and has remained unchanged for seven years, tax experts said. Including surcharge and cess, the effective rate is 33%. The surcharge on corporation tax was reduced last year from 10% to 5%.
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, though the tight fiscal situation is an impediment.
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