5. Tax incentive to Manufacturing Companies: The government is planning to come up with incentive packages for the manufacturing companies in order to encourage companies as a part of ‘Make In India Campaign’. The manufacturing sector needs support of the government in the form of tax concession. The government may lower the corporate tax rate from 33 percent to 25 percent this session.

6. Defer the General Anti Avoidance Rule (GAAR) by at least 2 years: GAAR is an important part of dealing with international taxation. The main purpose of GAAR is to check on tax evaders who use different tactics intentionally to avoid tax. Since it is an extremely advanced instrument of tax administration, tax officers are needed to be trained intensively with the fine aspects of international taxation. Hence, the implementation of GAAR is expected to be deferred by 2 years.  

7. Transfer Pricing By Notifying Safe harbor provisions: The provisions are expected to be introduced to empower the central board direct tax to notify safe harbor rules for determination of arms. This will bring certainty for the Information Technology and reduce tax litigation. 

The scope of the Harbor rules is may even be extended to cover major sectors of IT enabled service sector, Research and Development Centers and manufacturing and automobile sectors in order to diminish litigation issues.

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Budget: 2015: To Bring Notable Changes In Income Tax And Corporate Tax