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A recent survey has shown that the majority of the Indian taxpayers do not expect any major changes in the direct tax policy in the upcoming Union Budget to be presented on July 5.
Around 53 percent of the taxpayers interviewed in the KPMG's pre-budget survey felt that there will not be any major announcement on direct taxes. Around 27 percent said that there will be major changes, while 20 percent were not sure of any eventuality, the report showed.
"The new and simplified Direct Tax Code (DTC) being on the anvil, majority of the respondents expect that the Union Budget 2019-20 is unlikely to announce any major direct tax policy amendments.
"The levies like minimum alternate tax, dividend distribution tax, surcharge, and cess are also unlikely to change significantly," the report said.
Also, most of the companies surveyed upon do not expect a reduction in corporate tax for all firms and LLPs (limited liability partnership).
"Majority of the respondents expect that the corporate tax rate is unlikely to be reduced to 25 percent as applicable to small companies. The respondents expect that the tax rate for LLPs will be aligned with the tax rate applicable to companies," it said.
The survey also showed that while 46 percent of the companies with turnover exceeding Rs 250 crore feel that corporate tax will not be reduced to 25 percent, 39 percent hope for a cut.
Majority of the respondents also expect that for individuals there will be an increase in the basic tax exemption limit of Rs 2.5 lakh. They also expect a higher tax burden of 40 percent on "super rich" taxpayers having taxable income of above Rs 10 crore, the survey revealed.
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