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Smt. Nirmala Sitharaman
Hon’ble Union Minister of Finance and Corporate Affairs
Ministry of Finance
Government of India
North Block
New Delhi 110 001
Hon’ble Finance Minister,
Post-Budget Memorandum 2025-26 of Bombay Chamber [Direct Tax]
The Bombay Chamber heartily congratulates the Hon’ble Finance Minister for presenting a record setting 8th consecutive budget on 1st February 2025. The Bombay Chamber deeply appreciates the policy framework laid out in the Budget around five engines of Agriculture, MSMEs, Investment, Exports and Reforms (including Tax Reforms). These measures will put India firmly on the growth path to achieve the ambition of Viksit Bharat by 2047.
From a tax policy perspective, the Bombay Chamber welcomes the personal tax relief by providing for NIL tax for income upto Rs. 12 lakhs. This will benefit all individual taxpayers especially in the middle class and boost consumption & savings. The Chamber also welcomes the new presumptive taxation regime for non-residents providing services or technology to resident companies establishing or operating electronics manufacturing units under MEITY schemes. The IFSC related tax amendments will also give boost to economic activity in IFSC and help to develop GIFT City as worldclass financial centre.
However, certain direct tax proposals in the Budget like restricting loss carry forward in amalgamation require reconsideration. Certain proposals like enhancement of rebate u/s. 87A and exemption for life insurance policies from IFSC insurance offices require change in language to effectuate true intent of the Government and avoid any litigation.
On the basis of the responses received from our Members, a Memorandum containing suggestions of Bombay Chamber [Direct Tax] on the issues related to the Finance Bill 2025 is attached for your kind consideration. In addition to amalgamation, rebate and IFSC insurance policies referred above, these include request to clarify the ambiguities in new presumptive scheme for non-residents, rationalise holding period for business undertaking to 2 years and shares transferred by promoters in OFS in IPO to 1 year, IFSC related amendments, rationalisation of domestic TDS provisions, extension of 10 year registration to s.80G approvals and other provisions in Finance Bill 2025
Our representatives would deem it a privilege to participate in the meetings organised by the Department of Revenue for post-budget discussions and provide any further clarifications, if required, with regard to our suggestions.
Thanking you,
Yours faithfully,
Sandeep Khosla
Director General
