The government is expected to give a more rationalised TDS framework to minimise compliance costs for taxpayers, as well as a revised new concessional tax regime with additional benefits such as standard deduction, Ernst Young said.
According to the budget wishlist, the government should give low and middle-income taxpayers with yearly incomes up to 20 lakh some relief.
The budget, which will be published in Parliament on February 1, may include the possibility of green incentives, such as the tax exemption of interest from green bonds and the rationalisation of capital gains rates and holding periods.
The Income Tax Act, which deals withholding tax rates ranging from 0.1 to 30 per cent, addresses different forms of payments that are made to citizens, withholding tax rates ranging from 0.1 to 30 per cent, said EY.
The TDS framework could be simplified by the government to reduce compliance burden for taxpayers. EY said there could be a simplification in the TDS procedures pertaining to NR non-resident individuals.
EY said that investment and production-linked incentives may be considered for strategic sectors that can improve'sustainability' or lead to energy efficiency.
Watch & Budget 2023: Date, Timings, Where To Watch Live Speech and Telecast from Finance Minister Nirmala Sitharaman