Hike Interest Deduction Limit for Home Loans to Rs 5 lakh: ASSOCHAM

The pre - Budget memorandum for 2013 -14 was jointly released by the ASSOCHAM (The Associated Chambers of Commerce & Industry of India) chamber President Dhoot, Chairman and Co-Chairman of taxes council Ved Jain and J.K. Mittal; and chamber's Secretary-General D.S. Rawat.

Raise personal income tax exemption limit to Rs. 3 lakh, reduce service tax & excise tax to 8% from 12% and increase deduction of interest on home loan to Rs. 5 lakh to revive consumer demand and boost investment, ASSOCHAM said in its Pre-Budget recommendations for 2013 -14  to the central Government.

Mr. Rajkumar Dhoot, President, ASSOCHAM said, ''The effective rate of corporate tax should also be brought down to 25% from 32.45% at present.The central govt. must restore the excise duty & service tax rate to an earlier level of 8%"

Highlights of ASSOCHAM Pre-Budget Recommendations..!

* The excise and service tax rates had been increased in the past 2 Budgets from 8% to 12%. Meanwhile the industrial growth has significantly fallen and due to low capital investment & high inflation, the demand for indigenous goods and services has been affected adversely. It is therefore, recommended that the excise duty & service tax rates should be restored to the earlier level of 8% prevailing two years ago.

* If the excise & service tax rates are restored to 8%, then it would give a much-needed boost to industry.

* The Customs duty rates could be selectively raised to neutralise the effect of lower tax rate of excise duty & service tax.

* The base exemption limit of resident individual below the age of 60 years should be increased to Rs. 3 lakh, to incentivise people to come into the income tax net, ensure higher collection from greater compliance & encourage consumption and savings.

"Budget 2013-14 will be a good opportunity for the Finance Minister to boost the confidence of industry and investors,” Dhoot said.

* Essential to revise the rate of depreciation on plant and machinery back to 25% from the existing level of 15% in view of the technologies.

* The tax base for goods & services has already expanded to generate high revenue & the central government can selectively increase Customs duty rates to neutralise the effect of lower tax rate of excise duty & service tax.

* By increasing Customs rates, the central Government should protect the domestic industry from unfair competition from countries like China. There are cases where goods are being sold in the global market below production cost in highly competitive markets abroad.

* At present, the limit of deduction of interest on housing loan is Rs 1.50 lakh per annum. This should be increased to Rs. 5 lakh to boost the housing sector as also give relief to middle class families.

* To encourage investments in infrastructure during the 12 th Plan period, the deduction under 801 A (4) “profit linked incentives in form of 100% deduction of income in SEZ development” must be continued..

* With a view to having a level-playing field & removal of such levies in the proposed DTC (Direct Taxes Code), the additional levy of tax by way of surcharge & education cesses should be removed on corporate assessees & similarly education cess on non-corporate assesses. The surcharges, including the education cess were levied as a temporary measure.

Photo : Rajkumar N. Dhoot, President of Assocham, flanked by Ved Jain (left), Chairman, Assocham National Council on Direct Taxes, and D.S. Rawat, Secretary General of Assocham, at a press conference presenting the Pre-Budget Memorandum-2013-14 in Delhi – Photo: Kamal Narang, The Hindu

Contact: 

Corporate Office - ASSOCHAM 

The Associated Chambers of Commerce and Industry of India

ASSOCHAM Corporate Office, 1, Community Centre Zamrudpur

Kailash Colony, New Delhi – 110 048

Ph: 46550555 (Hunting Line)

Fax: 46536481 / 46536482 46536497 / 46536498

E-mail: assocham@nic.in 

Regional Offices

Nakul Prakash Lakhe (Head)

4th Floor, Heritage Tower,

Behind Visnagar Bank, Ashram Road, 

Usmanpura, Ahmedabad-380014.

Ph: 079 - 2754 1729 Fax 079 - 3000 6352

Mob: +91 9662141916

Email: nakul.prakash@assocham.com, assocham.ahd1@assocham.com,

assocham.ahd2@assocham.com

Southern Regional Chapter

The Associated Chambers of Commerce & Industry of India (ASSOCHAM)

3524, 17th Main, First Cross, Service Road HAL, IInd Stage, 

Indiranagar, Bangalore 560 008, Karnataka, India

Phone: 08040943251-53 Fax: 080-41256629

Email: events@assocham.com, director.south@assocham.com

Eastern Regional Chapter

88A, 3rd Floor, Sarat Bose Road,

Kolkata 700 026, Ph: 033-6614 1600 Fax: 033-661 41601

Email: Kolkata@assocham.com

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