Common Man’s Wishlist

With the intent to boost consumer spending and provide impetus to revive the economy, the finance minister had sought suggestions from various stakeholders for Union Budget 2021. Here are some expectations of an average Indian:Tax Provisions Union Budget 2020 extended the applicability of Tax Collection at Source (TCS) at the rate of 5 per cent for overseas remittance exceeding Rs 7 lakh, under Liberalised Remittance Scheme (LRS). For non-resident Indians earning a salary in India, it is expected that specific clarifications be provided to adjust TCS against the withholding tax dues on monthly salary or income. This will ensure immediate cash flow benefits instead of claiming TCS as a refund through the tax return. Revisiting Deductibility Criteria While the introduction of the “simplified tax regime” in the previous Budget has provided some relief to taxpayers, it is...