The abrupt ban of high-value Rs 500 and Rs 1,000 notes on November 8 last year _ popularly referred as ‘demonetisation’ exercise — will not impact their business in the near term, according to majority of respondents to KPMG’s pre-budget Survey.
As many as 750 senior professionals across sectors participated in the online survey held in January 2017.
The survey has tried to capture the expectations of individuals and India Inc on various parameters such as policy reforms, India centre staging BEPS action plans, rationalisation of tax rates.
Around 82 per cent of the survey respondents also felt that demonetisation will lead to increased income tax collections.
The Survey highlighted that demonetisation has been one of the most, if not the most radical reform, Independent India has witnessed.
It came with the multiple objectives of curbing black money, widening the tax net and counterfeit currency management.
In the wake of demonetisation, certain amendments were made under the income tax Act to ensure that defaulting tax payers are subjected to higher tax rate and more stringent penalty provisions,
Corporate tax rate
A large majority of survey respondents (75 per cent) are expecting implementation of next phase of reduction in corporate tax rates.
A majority expect the minimum alternate tax, securities transaction tax and dividend distribution tax to remain unchanged.
Srivats.kr@thehindu.co.in