In the midst of the global slowdown and turbulence coupled with the beaten-up financial markets

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In the midst of the global slowdown and
turbulence coupled with the beaten-up financial
markets
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• In the midst of the global slowdown and
  turbulence coupled with the beaten-up financial
  markets, the Finance Minister has been able to
  present a pragmatic and well balanced budget
  rightly focusing on core sectors. Choosing to
  stick with FRBM target of 3.5 fiscal deficit is
  laudable.
• It was comforting to observe no change in two
  most discussed issues during pre-budget week,
  tinkering of capital gain tax regime and increase
  in the service tax rate. Budget has proposed
  noteworthy steps for reducing tax litigation and
  promoting affordable housing.
• This budget is rightly an onset to the long term
  expedition for a pensioned society and use of
  technology for interface between tax department
  and tax payer. As expected, the budget provides
  fillip to the start-ups be introduction of tax
  holidays. Deferral of POEM by a year a welcome
  move, but it would have been constructive if the
  deferral was till April 2017. However, on
  reduction in the corporate tax rate, much was
  expected than what is done.

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No mention on GST roadmap and completely missing
the disinvestment targets were big dampener.
Bringing dividend to tax in the hands of
recipient, though only for super rich, would
result in double taxation of the same income.
Plethora of cesses would further complicate the
intricate tax structure. Urban middle class,
which had maximum contributed to the GDP growth,
does not seem to be benefited much from the
budget. To summarize, amidst huge industry
expectation, the Budget on one hand deserves lot
of applause but at the same time fails on certain
expected parameters. Now, the focus shifts on
implementation. Source Mr. Divyang
Thakker Vice President-Direct Taxes, Reliance
Communications Limited


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