<h1>Corporate tax reduction: urges lowering company and firm rates to reduce costs and revive investment, plus broad tax reforms.</h1> Pre-budget memorandum urges broad direct tax reform: reduce corporate and unincorporated business tax rates and remove surcharge/cess; revise individual slabs and restore/enhance routine exemptions and allowances; clarify ESOP taxation to tax only on capital gains and proportionately for migrating employees; expand and clarify investment and depreciation incentives (including reclassification of certain assets and extension to new asset categories); rationalize Section 14A/Rule 8D disallowances; preserve tax neutrality for reorganisations and address anomalies in capital gains, buy-back and deemed dividend provisions; and implement practical TDS, MAT/DDT and charitable purpose reforms to reduce litigation and spur investment.