With just seven days to go for the Union Budget, KPMG has released a survey which predicts some significant changes in the existing tax regime. More than 200 respondents from over 15 sectors have participated in the poll.

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According to the survey, more than 74 percent expect an increase in the non-taxable income threshold, which currently stands at Rs 2.5 lakh per annum. Around 21 percent of respondents do not expect an increase.

A majority of 52 percent also expect additional taxes on the 'super rich' while 26 percent think otherwise. KPMG has defined 'super rich' as those earning Rs 10 crore a year or hold assets worth Rs 100 crore.

If the government decides to impose additional taxes on the the wealthy, how will it do so? A majority 58 percent expect a new tax slab of 40 percent on those earnings more than Rs 10 crore, while 10 percent see a wealth tax or an estate duty and 13 percent expect an inheritance tax.

As many as 46 percent of participants do not expect corporate tax rate going down to 25 percent for companies with a turnover of more than Rs 250 crore. But 39 percent think otherwise.

Forty-four percent expect corporate tax reduction for limited liability partnerships or LLPs. Tax rate could be eased to 25 percent, they say, while 34 percent don't seem to think so.

Commenting on the findings of the survey, Sunil Badala, Partner and Head - Financial Services Tax at KPMG India said: "There are two events happening, the new direct tax code is being drafted by the end of July and we are going to see another budget in seven months, on February 1, 2020. So, the expectation is that there won't be major structural changes in the budget this year."

On long-term capital gains tax, Badala said respondents from the capital market fraternity strongly believe that there should be a rollback on the long term capital gains. "FPIs are strongly lobbying with the government for a rollback on the long term capital gains tax. Their rationale is that we are already paying STT. In majority of the countries across the globe, FPIs don't pay any tax, forget

long-term capital gains, they don't even pay short-term capital gains. So, there is a case for rollback of long term capital gains tax, may be for all the tax payers but particularly for FPIs," he noted.

Almost 99 percent of the companies are now paying corporate tax at the rate of 25 percent. "It is a matter of debate whether surcharge and education cess should also form a part of that 25 percent or not. Currently it is in addition to the 25 percent. However, there is obviously an expectation that for the remaining one percent companies, may be this change will not come," Badala observed.