STT abolished in share trading, relief in income tax…Industry’s presentation in front of Finance Minister before the budget

Union Budget 2025: The Union Finance Minister is scheduled to present the Union Budget on February 1, 2025. This budget is expected to bring improvements especially for the middle class. Various industry experts have made various recommendations for economic reforms. In which there has been a demand to remove STT from the stock market, give relief in income tax and take steps to control inflation.

Demand to reduce STT on share trading

PHD Chamber has recommended to the Finance Minister to completely abolish the securities transaction tax imposed on trading in the stock market. Recently, long term capital gains tax has been increased from 10 percent to 12.5 percent. There have been demands to remove STT on share trading as long-term capital gains are at par with the tax levied on other assets. In the current financial year the government has spent Rs. Rs 40114 crore has been collected. Therefore, this demand has been made to reduce the tax burden on investors. This will boost the economy.

please government on corporate

Representatives of trade chambers also participated in the pre-budget meeting. In which ASSOCHAM demanded to reduce the tax burden on common taxpayers. Assocham said, just as corporate tax has been reduced, personal tax rates should also be reduced. This will reduce the burden on the middle class. The gap between individual and corporate taxes continues to widen. The Central Government has appealed to the corporate world as well as the common citizen to pay attention to this. The tax rate in the old tax system is 42.74 percent and the tax rate in the new tax system is 39 percent. Whereas the corporate tax rate is only 25.17 percent.

Highest tax in India

According to ASSOCHAM, the personal income tax rate in India is higher than other countries. The tax is 15 percent in Hong Kong, 18 percent in Sri Lanka, 25 percent in Bangladesh and 22 percent in Singapore. Additionally, confusion has also increased due to two different tax regimes. Therefore, there is a demand to provide relief along with simplification in income tax.