Chairman Manipal Global Ed. said – Surcharge should be removed on the income of the rich

Expectations from Budget-2023: Chairman Manipal Global Ed. said – Surcharge should be removed from the income of the rich

Jan 24, 2023 - 08:25
Chairman Manipal Global Ed. said – Surcharge should be removed on the income of the rich

Manipal Global Education Chairman TV Mohandas Pai has high hopes for Budget 2023. He believes that the government can take some bold steps in the budget. There is a possibility of focusing on resolving old issues and disputes. Despite the ever-increasing inflation, the middle class has not received any special tax relief for the last few years. He is hopeful that the government will increase the tax slab in this budget.
Along with this, 15% and 25% surcharges should be removed in addition to the 43% tax on the income of the rich class (HNI) above 5 crores. Due to this, more than 10 thousand HNIs have left India. Along with these, consumption of 40-50 thousand, crores will also go away from India.
Tax-related disputes are on the rise due to heavy tax assessments by the authorities. The amount involved in such disputes has increased from Rs 4.5 lakh crore in 2014 to Rs 12.5 lakh crore last year. The government should bring such a scheme so that all old tax disputes are disposed of by a judicial authority expeditiously.
We expect the government to make announcements in this budget to remove the disparity in capital gains tax between listed and unlisted companies. Currently, unlisted companies pay 20% capital gains tax, while it is 10% for listed companies.
Also, in the case of ESOP (Employee Stock Ownership Plan) for unlisted companies, tax should be levied at the point of sale. It may be ensured that all ESOP shares are issued in dematerialized form and are kept in the depository till they are sold. They should be taxed only when they are sold.
Many startups are setting up headquarters outside India in tax havens or low-tax countries to save tax. There is a need to formulate at least a short-term policy to bring them back to the country. We hope that there will be some such announcement in the budget. By doing this, more and more people can be motivated to become entrepreneurs. The lower class of the country will also get benefit from this.

Muskan Kumawat Journalist & Writer