A delegation of the Federation of Indian Chambers of Commerce and Industry (FICCI) led by former president Rajan Bharti Mittal recently met Ajay Bhushan Pandey, secretary (revenue) in the finance ministry, during a pre-budget discussion meeting and urged the government to spur domestic investment and cut corporate tax rate to retain India’s competitiveness globally.
With phasing out of exemptions and deductions available under the Income Tax Act, 1961 and to avoid complexities arising under Indian accounting standard (Ind-AS), there is a need to review the concept of minimum alternate tax (MAT), the delegation recommended.A delegation of the Federation of Indian Chambers of Commerce and Industry led by former president Rajan Bharti Mittal recently met Ajay Bhushan Pandey, secretary (revenue) in the finance ministry, during a pre-budget discussion meeting and urged the government to spur domestic investment and cut corporate tax rate to retain India's competitiveness globally.#
MAT should be abolished and a simpler alternate minimum tax should be introduced for corporations as is currently applicable to non-corporations, but at a reduced rate of 10 per cent considering the reduction in corporate tax rate to 2 per cent in line with the global trend, it was recommended.
The need to restore weighted deduction under section 35(2AB) of the Act for expenditure incurred on scientific research being critical for Indian businesses was clearly stressed upon, said a FICCI press release.
Recommendations for amendments required in the Act to facilitate smooth re-organisation across the economy were also made. (DS)
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