EY Recommends Major Overhaul of Tax Policies in Upcoming Budget

EY suggests significant changes in tax policies for the upcoming Budget, including doubling the standard deduction under the new concessional tax regime and increasing the basic exemption limit. Other recommendations include streamlining TDS provisions, maintaining stable corporate tax rates, and improving dispute resolution mechanisms to foster economic growth.

In a detailed recommendation ahead of the upcoming Budget, tax and consultancy firm EY has urged the government to double the standard deduction under the new concessional tax regime to Rs 1 lakh or raise the basic exemption limit to Rs 3.5 lakh. This, according to EY, would make the regime more attractive to taxpayers.

Highlighting the government's need to streamline tax structures and enhance policy frameworks for economic growth, EY's priorities include maintaining stable corporate tax rates and rationalizing TDS provisions to reduce compliance burdens. The firm also advocates for improved dispute resolution mechanisms, which they believe will promote a more conducive business environment.

Furthermore, EY emphasized the success of technology and data-driven tax compliance initiatives such as pre-filled returns and faster processing of refunds, while pointing out the need for better interaction with the Central Processing Centre. These strategic reforms, EY asserts, are crucial for fostering economic resilience and improving the ease of doing business in the country.

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