Govt may tighten presumptive taxation norms, do away with some deductions – Business Standard

The government, given the grim revenue position and clamour for tax cuts for the salaried classes, is considering a tighter presumptive taxation scheme. This is among the measures being examined to make rationalising income-tax slabs a revenue-neutral exercise in the upcoming Budget.

The direct tax panel to overhaul income-tax legislation has recommended this. It has projected a revenue gain of close to Rs 10,000 crore if such a measure is implemented. The presumptive taxation scheme allows businesses having a turnover of less than Rs 2 crore in a financial year to estimate their …