Finance Minister Nirmala Sitharaman Will present the Union Budget for the financial year 2025-26 on Saturday, February 1. Preparations for the general budget are going on in full swing. The industry has high expectations about getting relief from the budget. Everyone is putting their demands before the Finance Minister. The Finance Minister is also meeting industry representatives one by one and taking their suggestions. Now the businessmen of the garment industry have demanded from the Finance Minister to provide tax incentives for this sector in the upcoming budget. AEPC, an organization of garment exporters, on Saturday urged the government to announce tax incentives in the upcoming general budget. This includes removing the provision requiring MSMEs to make payment within 45 days to claim import duty reduction and customs duty exemption on apparel machinery. Businessmen associated with the industry say that if our demands are met, it will help in increasing exports. This will increase employment opportunities in the country. Besides this, the revenue of the government will also increase.
Will help in increasing exports
The Apparel Export Promotion Council (AEPC) also requested that an interest equalization rate of five percent be announced in the budget. Finance Minister Nirmala Sitharaman will present the budget in Parliament on February 1. The Council also called for extension of concessional tax rate to encourage setting up of new apparel units, simplification in the process of import of trims and embellishments under IGCR (import of goods at concessional rate) and liberalization of e-commerce export procedures. Somewhere. The readymade garment (RMG) industry has also demanded removal of Section 43B (H) of the IT Act in the upcoming budget, which limits any MSME companies from claiming any deduction in tax to a maximum of Rs 45 per cent, it said in a statement. Related to payment within days. According to the statement, this has increased tax liabilities and disrupted cash flow for exporters.
Suggestion to simplify income tax return form
ICAI, the apex body of chartered accountants, has sought tax benefits to promote climate change prevention strategies and a separate section for income from shares and securities in income tax return forms. Additionally, the Institute of Chartered Accountants of India (ICAI) has also suggested a special tax regime for partnership firms and limited liability partnerships (LLPs) as well as simplification of income tax return forms. In its pre-Budget suggestions, the institute has advocated prudent tax reforms to boost economic growth and encourage environment-friendly measures. Among other suggestions, ICAI has recommended shares and securities A new section has been proposed to show income from, which will have provisions for tax liability in respect of income from dividends, interest or capital gains. The institute has also suggested rationalizing the conditions for treating defective returns of income in the e-filing system and giving an opportunity of hearing before treating defective returns as invalid.
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