The traders in Uttar Pradesh have demanded multifarious tax reforms in the Union Budget 2012 for boosting trade and commerce. The Budget would be presented in Parliament on March 16 after the Assembly polls in five states get over and results are declared.
In the backdrop of inflation, the traders have demanded a raise in the personal income tax (I-T) exemption ceiling to Rs 3 lakh and recast of I-T slabs. Besides, the maximum IT slab of 30 per cent should be decreased to 25 per cent on income above Rs 20 lakh. The Uttar Pradesh Udyog Vyapar Pratinidhi Mandal has written to the Centre about its pertinent recommendations.
The traders have suggested that the interest income on term deposit of senior citizens be exempted from I-T. The wealth tax ceiling be raised to Rs 50 lakh from Rs 25 lakh at present, while traders earning Rs 5 lakh annually be brought under the I-T Samadhan Yojna for simplified taxation procedure. Besides, the Mandal has demanded union finance minister Pranab Mukherjee to raise the excise duty limit for small entrepreneurs to Rs 3 crore from the current Rs 1.5 crore. “This would give much needed headroom to small entities,” Mandal president Banwari Lal Kanchal said.
“Let the proposed GST (goods and service tax) exempt apparels and commodities from tax, while bullion trade be brought under one per cent tax,” he said. The traders have demanded the central and state GST should be subsumed under one regime.
Other major demands include raising cash transaction limit to Rs 1,00,000 from Rs 20,000, increasing the audit exemption limit up to Rs 100,000,000 from what is now Rs 60,00,000, exempting traders with Rs 100,000,000 crore turnover from paper work and launching pension scheme for traders paying I-T of over Rs 25,000 annually.