Budget to bring reforms towards simplified tax regime: Survey

Indian businesses are hopeful that Finance Minister Arun Jaitley will introduce tax reforms in the upcoming Union Budget to create a more simplified and litigation free tax regime to enhance ease of doing business in India, according to a survey.

As per Grant Thornton's Pre-Budget Corporate Expectations Survey - 2016, the upcoming Budget will bring tax reforms for minimisation of litigation in the country.

"While some big ticket reforms such as Goods and Service Tax (GST) may be mired in politics, one hopes that the government remains firm on its commitment to make India an attractive investment destination by targeted incentives," said Riaz Thingna, Director, Grant Thornton Advisory.

Meanwhile, an overwhelming 96% surveyed population expect introduction of tax holidays for startups in India and 88% of the respondents expect tax incentives would be doled out in support of Make in India campaign.

The survey noted that corporate India expects a maximum thrust on the startup segment and manufacturing sector, followed by infrastructure and defence sectors.

As far as the expectations from the changes in tax rates are concerned, 59% respondents expect the government would announce a reduction in corporate tax rates. More than half of the respondents (55%) expect a rate cut for personal taxation as well.

On the indirect tax front, 56% respondents expect that Goods and Service Tax Bill will be passed in the upcoming Budget Session.