The Institute of Chartered Accountants of India (ICAI) has offered plenty of suggestions for upcoming Union Budget 2025. The ICAI aims at reducing disputes and compliance challenges, ICAI’s recommendations cover key areas such as simplifying tax laws, removing obsolete provisions, and enhancing procedural clarity.
Specific proposals from ICAI include introducing special tax regimes for firms and LLPs, revising the taxation structure for charitable trusts, and easing the process for determining residential status. To mitigate litigation, ICAI suggests aligning TDS/TCS rates with audit trail objectives, limiting adjustments under section 143(1)(a), and establishing robust grievance redressal mechanisms.
ICAI, for reducing compliance burdens, recommends a year-wise e-ledger system for tax credits, extending deadlines for filing returns, and simplifying income tax return forms.
ICAI advocates for tax reforms that foster economic growth and support sustainability. It suggests providing tax benefits for climate change mitigation efforts and encouraging women’s property ownership by revising stamp duty policies.
It calls for introduction of a unified tax category for income from shares and securities, simplifying capital gains provisions, and rationalizing tax rates for unexplained investments.
ICAI proposes recognizing depreciation under the Companies Act, streamlining e-filing conditions, and easing tax compliance for non-resident transactions. These initiatives are likely to align tax policies with broader economic and social objectives while ensuring clarity and fairness in implementation.