Taxpayer Trends: Call for Lower Rates in Upcoming Budget

Grant Thornton Bharat's pre-budget survey reveals that 57% of individual taxpayers want reduced taxes in the upcoming Budget. Despite 72% opting for a new tax regime, 63% still seek increased incentives. The survey highlights demands for higher exemption limits and better set-off terms for losses under housing and electric vehicle investments.

According to a recent survey conducted by Grant Thornton Bharat, 57% of individual taxpayers are advocating for reduced tax rates in the forthcoming Budget. This pre-budget survey, which involved over 500 respondents, underscores the call for tax relief to enhance disposable incomes.

The survey revealed contrasting preferences regarding the tax regimes. Although 72% have opted for the new income tax regime, a notable 63% of taxpayers persistently seek increased incentives under the old system. To enhance the attractiveness of the new regime, 46% of participants advocate for reduced tax rates, and 26% support an extension of exemption limits.

Additional insights from the survey show a push for flexible tax loss offsets and investment incentives. A majority, 53%, believes that allowing the set-off of house property losses could bolster real estate investments, while 47% suggest raising or abolishing the Rs 2 lakh limit. Commenting on the findings, Akhil Chandna, Partner at Grant Thornton Bharat, noted the potential benefits of increasing NPS tax deduction limits and providing tax incentives for electric vehicle purchases.

(With inputs from agencies.)