Assocham wants I-T limit exemption raised to ₹5 lakh per annum in Budget

Industry body Assocham has pitched for raising the income tax exemption limit to Rs 5 lakh per annum in the coming Union Budget. This is expected to leave more disposable income in the hands of consumers, giving the economy a consumption boost next fiscal.

Speaking to ET, Assocham president Sumant Sinha also said that the Centre should ease regulations that enable companies which are listed in overseas exchanges to issue shares in the Indian stock markets as well.

"At one point, Indian government had tried to get Indian companies to list overseas. That did not happen. We should also allow the reverse, overseas companies to list in India," he said, adding, "While the Indian Depository Receipts (IDRs) process is there, no companies have come in because it is a little restrictive."

Sinha gave the example of his NASDAQ-listed company Renew Power, and said that the present IDR process does not allow him to list on Indian exchanges. "This is because we have not been listed long enough overseas. But if it was permitted, we could absolutely list in India as well," he said.

On the taxation front, Sinha said that corporate tax should be levied at a group level, instead of special purpose vehicle (SPV) level in some sectors, "There are instances where taxes are being paid by companies that are making losses at the group level since some SPVs are profitable," he said.

In a statement, Assocham said that the 15% corporate tax rate for new investments in manufacturing can be extended to all sectors, including services. This is in line with plans for a sustainable growth by further promoting investment. Sinha also said that import duties can be lowered for batteries, and green hydrogen equipment in the coming budget.