Election results are around the corner. In this article, we will discuss what changes we can expect in the taxes from the new government during the period 2024 to 2029.
Changes Anticipated in GST
Resolution of Unsolved GST Issues
- Itโs been around 9 years since GST was introduced, yet many issues still require clear interpretations in the Act. There are many unresolved issues in GST which create havoc for the taxpayers as well as the department.
Resolution of Pending Cases
- There are around 14,227 appeals against disputed tax demands raised by GST authorities. The government may set up systems and processes for the disposal of pending cases.
Use of Artificial Intelligence for Dispute Resolution & Case Selection
- AI and machine learning may assist in resolving disputes quickly and efficiently.
Revamping of Inverted Duty Structure
- The inverted duty structure, where inputs and raw materials attract higher GST than the output, usually creates a blockage of working capital for manufacturers. The government may look at revamping this structure to assist manufacturers with their working capital issues.
Changes Anticipated in Income Tax
Introduction of Direct Tax Code (DTC)
- The government may introduce a Direct Tax Code aimed at making significant changes to the income tax structure.
Changes in Capital Gain Tax Rates
- Capital gain tax rates may be revised in the future, particularly long-term capital gain tax rates on assets other than equity shares, which are currently higher than those on equity shares.
Extension of Tax Holidays for Startups
- Tax holidays for eligible startups registered under DPIIT may be extended, and more benefits may be introduced to attract more investments and talent.
Reduction of Tax Rates for Salaried Class
- Tax rates for salaried individuals may be reduced to provide relief to this class of taxpayers.
Beyond these outlined points, there's a myriad of expectations for comprehensive tax reforms. What are your thoughts and expectations regarding these anticipated changes?
