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KPMG pre-budget survey: Majority seek tweaks in corporate taxation, higher tax exemptions

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Budget 2022 is round the corner and the finance minister is gearing up to present the third budget amid a global pandemic. KPMG India conducted a pre-budget survey seeking views of key stakeholders on several tax-related aspects of the upcoming budget. According to the survey, 64 percent respondents expect an enhancement in the basic income tax exemption limit of Rs 2.5 lakh. Most respondents also support an increase in the top income slab of Rs 10 lakh and above.

Budget 2022 is round the corner and the finance minister is gearing up to present the third budget amid a global pandemic. Expectations are high and challenges are many. But the main focus remains on how the budget will stimulate consumption, increase investments, job creation and spur growth.
KPMG India conducted a pre-budget survey seeking views of key stakeholders on several tax-related aspects of the upcoming budget.
According to the survey, 64 percent respondents expect an enhancement in the basic income tax exemption limit of Rs 2.5 lakh.
Most respondents also support an increase in the top income slab of Rs 10 lakh and above, also an increase in the existing Section 80C deduction limit of Rs 1.5 lakh.
On corporate taxation, the government had reduced corporate tax to 15 percent for new manufacturing companies, provided they start production by March 2023. 72 percent of respondents surveyed want the government to extend this deadline beyond March 2023 given the pandemic-led economic disruptions.
Further, a large number of respondents also want the government to bring corporate tax on Indian branches of foreign companies down from 40 percent to 22 percent, which is the rate applicable on domestic companies.
To discuss more on the budget expectations and key findings of the survey, CNBC-TV18 spoke to Gaurav Mehndiratta, Partner & Head of Corporate Tax at KPMG in India.
Watch video for more.
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