Finance Minister Nirmala Sitharaman will present the Union Budget for the financial year 2025-26 on Saturday, February 1. Preparations for the general budget are going on in full swing. The industry has high hopes for relief from the budget. Everyone is placing their demands before the Finance Minister. The Finance Minister is also meeting the representatives of the industry one by one and taking their suggestions. Now the businessmen of the garment industry have demanded the Finance Minister to give tax incentives for this sector in the upcoming budget. AEPC, an organization of garment exporters, on Saturday urged the government to announce tax incentives in the upcoming general budget. This includes removal of the provision requiring MSMEs to make payment within 45 days to claim import duty deduction and customs exemption on garment machinery. Businessmen associated with the industry say that if our demands are met, it will help in increasing exports. This will increase employment opportunities in the country. Besides, government revenue will also increase. 

will help in increasing exports

The Apparel Export Promotion Council (AEPC) also requested that an interest equalisation rate of five per cent be announced in the budget. Finance Minister Nirmala Sitharaman will present the budget in Parliament on February 1. The council also called for extension of concessional tax rate to encourage setting up of new garment units, simplification in the process of import of trims and embellishments under IGCR (import of goods at concessional rate) and liberalisation of e-commerce export processes. The readymade garment (RMG) industry has also sought removal of Section 43B (h) of the IT Act in the upcoming budget, which deals with payment within a maximum of 45 days to any MSME companies to claim any deduction in tax. According to the statement, this has increased tax liabilities and disrupted cash flow for exporters. 

Suggestion to simplify the income tax return form 

ICAI, the apex body of chartered accountants, has demanded tax benefits to promote climate change mitigation strategies and a separate section for income from shares and securities in the income tax return form. Apart from this, the Institute of Chartered Accountants of India (ICAI) has also suggested a special tax regime for partnership firms and limited liability partnerships (LLPs) as well as simplification of income tax return forms. In its pre-budget suggestion, the institute has advocated prudent tax reforms to boost economic growth and encourage environment-friendly measures. Among other suggestions, ICAI has proposed a new section to show income from shares and securities  , which will have provisions for tax liability in respect of income from dividend, interest or capital gains. The institute has also suggested rationalizing the conditions for considering income returns as defective in the e-filing system and providing an opportunity of hearing before considering the defective return as invalid.