ICAI seeks tax incentives for entities engaged in green energy projects
The Institute of Chartered Accountants of India (ICAI) has submitted its Pre-Budget Memorandum 2024 to the Central Board of Direct Taxes (CBDT). The full budget for the current financial year 2024-25 will be presented by the new government.
Chartered accountants' apex body ICAI has proposed separate deduction of expenses related to education of a girl child in the tax regime as well as tax incentives for entities engaged in green projects and skill development activities.
The Institute of Chartered Accountants of India (ICAI) has submitted its Pre-Budget Memorandum 2024 to the Central Board of Direct Taxes (CBDT). The full budget for the current financial year 2024-25 will be presented by the new government.
The counting for the Lok Sabha polls is on June 4.
One of the proposals is for having a separate provision for deduction of expenses relating to education of girl child both under the default tax and alternative tax regimes.
Other significant suggestions relating to the personal taxation regime include provisions of deduction for mediclaim premium paid under the default tax regime, regular enhancement of standard deduction and option of joint taxation for married couples, the ICAI said in a release on Monday.
Further, the institute has pitched for tax incentives for entities engaged in green projects and those involved exclusively in skill development programmes. There is also a proposal that interest income earned by the subscribers of green bonds may be exempt or be subject to a concessional rate of tax.
On the business taxation front, the suggestions include alignment of the provisions of tax audit with the presumptive income provisions, further simplification of presumptive income regime and increasing the threshold for computation of allowable remuneration of partners.
The memorandum has proposed rationalisation of the provisions relating to taxation of charitable trusts.
"In order to enhance green finance and encourage green projects, we have advocated for special incentives to entities undertaking green projects and propose exemption for interest income of subscribers of green bonds issued by such entities," ICAI President Ranjeet Kumar Agarwal said.
The institute has around 8.5 lakh students and over 4 lakh members.
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