Price range 2025: Essential to rationalize surcharge on salaried people

Price range 2025 earnings tax expectations: Finance Minister Nirmala Sitharaman will current the Union Price range 2025 on February 1, 2025. In its pre-Price range 2025 memorandum, Assocham has known as for rationalization of surcharge on salaried people.
As per the present provisions the relevant surcharge charges on salaried people are as follows:

In an effort to deliver parity between the classification of small assessee(s) being professionals vis-à-vis salaried people, Assocham says that FM Nirmala Sitharaman in her Price range ought to think about rising the brink for surcharge by 50% as beneath.

In an effort to defend the curiosity of the income, the utmost slab might proceed to be saved at Rs 5 crore.
“Vide Finance Act 2023, a proviso was inserted below part 44ADA(1) [i.e., presumptive taxation for particular person or partnership agency (aside from LLP) engaged in occupation, pursuant to which the eligibility restrict for opting presumptive taxation was elevated for gross receipts from occupation from Rs 50 lakh to Rs 75 lakh – in these instances the place the mixture quantity obtained in money doesn’t exceed 5% of whole gross receipts,” Assocham says.
Additionally Learn | Price range 2025: Cut back earnings tax charges, exceptionally excessive in comparison with different international locations, says Assocham
This means that, with a purpose to ease compliance, the tax division is treating professionals having receipts of Rs 75 lakh or much less (in case of non-cash receipts) as small taxpayers. In an effort to promote the digital financial system, the division elevated the brink of presumptive taxation by 50% (i.e. from Rs 50 lakh to Rs 75 lakh).
Nonetheless, from a surcharge levy perspective, the brink begins from Rs 50 lakh, it says.