FinNinistry kick started to formulate next budget for rationalizing Income Tax
According to sources in perhaps the first instance, the finance ministry has kicked off the exercise to formulate the next budget by seeking suggestions on changes in direct and indirect taxes from industry and trade associations. Meanwhile Finance minister nirmala sitharaman, who had to announce additional measures to stimulate a slowing economy within a month of her maiden budget being approved by Parliament, is due to present the annual budget for the financial year 2020-21 on february 1.
Furthermore the ministry holds pre-budget consultations with representatives of different sectors and stakeholders, the Department of Revenue in the finance ministry perhaps for the first time put out circular seeking suggestions for changes in income tax rates for both individuals and corporate as well as in indirect taxes such as excise and customs duty. Reportedly with the GST Council, an umbrella body comprising of central and state ministers, the final decision-making authority on the goods and services tax (GST), the order said that GST-related requests are not examined as part of the annual budget.
Moreover it, however, sought suggestions related to customers and central excise duty and the suggestions have been sought by november 21.