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Surat: The Southern Gujarat Chamber of Commerce and Industry (SGCCI) and various trade associations have submitted a representation to the Union Finance Minister to increase the MSME turnover limit from Rs 2 crore to Rs 10 crore in the upcoming budget of 2026-27 to help the unit holders avail exemption from complicated accounts.
SGCCI has proposed that the TDS should have three slabs instead of the complex tax rates ranging from 1% to 30%. Some changes in the policies and regulations on sensitive issues like MSME registration and definition, taxation, tax deduction etc. will free small and medium scale entrepreneurs from complicated account books and they will be able to easily manage their accounts.
SGCCI president Nikhil Madrasi, vice-president Ashok Jirawala, and former SGCCI president Vijay Mewawala have presented five different issues regarding the representations made to the Finance Minister to make the definition of Ease of Doing Business in the Union Budget realistic.
Reforms in Tax Assessment
Currently, assessment of different categories is done every year, which leads to repetition of the process. There has been a demand for assessment for a ‘block’ of 2-3 years as per international standards, so that the administrative burden is reduced and the process becomes more efficient.
Transparency in refund and interest rate
It is proposed to fix a strict time limit of 30 days for issuing refund to taxpayers. If the refund is not received within this period, then there has been a provision to pay interest at the rate of 9% per annum as reasonable compensation to the taxpayer.
Increase in the limit of presumptive taxation for MSMEs
In view of the changed definition of MSME, it is proposed to increase the turnover limit for micro enterprises from Rs 2 crore to Rs 10 crore. This will exempt small traders from audits and complex accounts and increase the ease of doing business.
Simplification of TDS structure
Instead of various complex TDS rates ranging from 1% to 30%, it is recommended to have only 3 main slabs. This will reduce disputes between rates and make tax compliance much easier for general traders and professionals.
Increase in the period of business loss set-off
Long-term businesses like infrastructure and health insurance tend to incur large losses in the initial years. In such cases, it is proposed to increase the limit of carrying forward of business losses from 8 years to 12 years, so that industries get adequate financial support.
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