New Delhi: From allowing company dividends to be linked to the market value of shares, abolishing income tax (IT), goods and services tax (GST) on insurance policies, raising the IT exemption limit to Rs 5 lakh, expectations are high in the upcoming budget. are from A Tamil Nadu government employee said, “There is no list of wishes. There is just one wish. Zero tax.”
While this may be possible in a utopia, another interesting desire expressed by chartered accountants is to link the dividends declared by companies to the market value of shares. “At present all the companies are paying dividend on the face value of the shares.ALSO READ: Despite multiple elections ahead, prospects for populist budget look bleak,
There is a big difference between market value and face value. For example, the market price of TCS is around Rs 3,300 per share. While the marked price is Rs. Companies claim that they pay dividends at 150 per cent or 200 per cent, which is nothing but Rs 2 or Rs 3 per share at a price of Rs 3,300. The returns are pathetic,” chartered accountant Srinivasan Jaishankar told IANS. (ALSO READ: Union Budget 2023 expected to focus on job creation,
“The government should ask companies to pay a dividend at a benchmark rate at the average market price of the last 12 months. Let’s say if the average share price of TCS is Rs 3,000 per share, they should pay a dividend at 3 per cent. Market value, which is Rs 90 per share. In short, the dividend should actually be related to the inflation rate,” Jaishankar said.
According to Jaishankar, for MSMEs to survive and flourish individuals should be given IT deduction of Rs. 5,000 if they buy anything from MSMEs making organic household items, khadi products, handicrafts, pottery and others through RuPay, Zippay, BHIM and others.
The government may create a portal for this so that MSMEs can register and all such payments are directly posted in the annual income statement published by the Income Tax Department so that they are entitled to the deduction.
He said that all property transfers should be done electronically without the need to carry original documents and others. A simple transfer receipt stored in DigiLocker should suffice.