Boosting middle- class prosperity: Industry pushes for tax benefits

Ficci is in favor of simplifying the direct tax system in the budget, as are industry lobby groups CII and PHDCCI, which have called for personal tax relief for the middle class.In a meeting with Sanjay Malhotra, the revenue secretary, Sanjiv Puri, the president of CII, advocated for marginal tax reduction for taxable income up to Rs 20 lakh. He also asked for lower fuel and diesel excise taxes, claiming that pump prices in Delhi had dropped by Rs 1.8 a litre even though Brent was 40% lower.

In addition, he recommended raising the MGNREGA minimum wage and the yearly PM-KISAN award from the current Rs 6,000 to Rs 8,000, arguing that these two actions would boost disposable income and promote consumption.

The rationalization of the capital gains tax regime into two or three broad categories of distinct asset kinds, the holding duration required for such assets to turn long-term, and the eligibility for indexation benefits are among the simplifications suggested by Ficci. It proposed classifying assets into three categories—debt, equity instruments, and other assets—and specifying rates for both short- and long-term gains without differentiating between residents and non-residents.

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