📊 𝑺𝒖𝒈𝒈𝒆𝒔𝒕𝒊𝒐𝒏𝒔 𝑴𝒂𝒅𝒆 𝒃𝒚 𝑰𝑪𝑨𝑰 𝒊𝒏 𝒕𝒉𝒆 𝑷𝒓𝒆-𝑩𝒖𝒅𝒈𝒆𝒕 𝑴𝒆𝒎𝒐𝒓𝒂𝒏𝒅𝒖𝒎 – 2025

As we approach the new fiscal year, the Institute of Chartered Accountants of India (ICAI) has proposed several significant recommendations in their Pre-Budget Memorandum for 2025. Here are some key suggestions:

💡 𝑲𝒆𝒚 𝑫𝒊𝒓𝒆𝒄𝒕 𝑻𝒂𝒙 & 𝑰𝒏𝒕𝒆𝒓𝒏𝒂𝒕𝒊𝒐𝒏𝒂𝒍 𝑻𝒂𝒙𝒂𝒕𝒊𝒐𝒏 𝑺𝒖𝒈𝒈𝒆𝒔𝒕𝒊𝒐𝒏𝒔:

🔹 𝐈𝐧𝐜𝐨𝐦𝐞 𝐟𝐫𝐨𝐦 𝐒𝐡𝐚𝐫𝐞𝐬 & 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬: Propose a new income head, “B - Income from shares and securities,” covering dividends, interest, and capital gains.

🔹 𝐄𝐧𝐡𝐚𝐧𝐜𝐞𝐝 𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝 𝐃𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧: Advocate for regular enhancement of the standard deduction, based on the cost inflation index.

🔹 𝐀𝐦𝐞𝐧𝐝𝐦𝐞𝐧𝐭 𝐨𝐟 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟒𝟒𝐀𝐃𝐀: Suggest deeming 33.33% of gross receipts from professions as “Profits and Gains of Business and Profession.”

🔹 𝐏𝐚𝐫𝐭𝐧𝐞𝐫 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐢𝐧 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟒𝟒𝐀𝐃/𝟒𝟒𝐀𝐃𝐀: Allow deductions for partner salary and interest under certain conditions.

🔹 𝐄𝐱𝐜𝐥𝐮𝐬𝐢𝐨𝐧 𝐨𝐟 𝐅&𝐎 & 𝐒𝐩𝐞𝐜𝐮𝐥𝐚𝐭𝐢𝐯𝐞 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬: Propose exclusion of these businesses from section 44AD for eligible assessees.

🔹 𝐒𝐩𝐞𝐜𝐢𝐚𝐥 𝐓𝐚𝐱 𝐑𝐞𝐠𝐢𝐦𝐞 𝐟𝐨𝐫 𝐅𝐢𝐫𝐦𝐬 & 𝐋𝐋𝐏𝐬: Introduce a concessional 22% tax rate for firms and LLPs, with simplified return forms for those opting for this regime.

🔹 𝐄𝐱𝐭𝐞𝐧𝐬𝐢𝐨𝐧 𝐟𝐨𝐫 𝐅𝐢𝐥𝐢𝐧𝐠 𝐑𝐞𝐭𝐮𝐫𝐧𝐬: Recommend extending the due date for filing belated and revised returns to March 31st.

🔹 𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐞 𝐢𝐧 𝐓𝐡𝐫𝐞𝐬𝐡𝐨𝐥𝐝 𝐟𝐨𝐫 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟏𝟗𝟒𝐉: Propose an increase in the independent threshold from ₹30,000 to ₹1,00,000, accounting for inflation.

🔹 𝐏𝐀𝐍-𝐀𝐚𝐝𝐡𝐚𝐚𝐫 𝐋𝐢𝐧𝐤𝐢𝐧𝐠: Suggest that demand notices for short deduction be quashed if PAN is linked with Aadhaar before the return filing date.

🤔 These suggestions aim to simplify tax processes, enhance taxpayer convenience, and ensure fairness in tax computations. Let’s stay tuned for how these ideas are reflected in the upcoming budget!

💬 𝑾𝒉𝒂𝒕 𝒂𝒓𝒆 𝒚𝒐𝒖𝒓 𝒕𝒉𝒐𝒖𝒈𝒉𝒕𝒔 𝒐𝒏 𝒕𝒉𝒆𝒔𝒆 𝒔𝒖𝒈𝒈𝒆𝒔𝒕𝒊𝒐𝒏𝒔? Drop your comments below! 👇

#TaxReforms #Budget2025 #ICAI #DirectTax #Taxation #Finance #IncomeTax #PreBudgetMemorandum #FinancialPolicy #TaxUpdates