The committee, however, left decision on tax rate and amount for standard deduction on the government which is assessing the suggestions ahead of Union Budget slated for February 1. The government is likely to move ahead with Income Computation and Disclosure Standards (ICDS) and make changes, if any, in the Budget accordingly.
Among other proposals, Easwar Panel has suggested scrapping of smaller allowances/deductions in Personal Income Tax (PIT). The committee has batted for standard deduction to replace small deductions/allowances in PIT, government sources told CNBC-TV18.
Besides, the panel also proposed to do away with notional tax liability on unoccupied house property.
In other development, the Finance Ministry’s economic affairs arm has suggested a single point taxation for foreign portfolio investors and urged the revenue department to clarify its stance on the triple tax issue soon.
Watch video to know what Ketan Dalal, Senior Tax Partner at Price-Waterhouse-Coopers; Sudhir Kapadia, National Tax Leader at Ernst & Young; and Dinesh Kanabar, CEO, Dhruva Advisors, had to say about the developments