POST BUDGET REACTIONS BY SATHGURU MANAGEMENT CONSULTANTS
The theme “Sab Ka Vikas Sab Ka Saath” has been kept in mind while presenting the budget 2017 which has an inclusive agenda and is balanced and well thought. The mantra for the Union Budget for FY 2017-18 is to “transform, energize & clean India- TEC India”, to build a stable, cleaner and a stronger institution.The budget focuses on the betterment of rural economy, financial sector reforms, digital economy, affordable housing and infrastructure and improvement of tax administration.
The reduction in the corporate tax rate to 25 percent from 30 percent in case of companies with turnover up to INR 50crs would benefit the MSME sector& some relief for individuals has been provided by reducing the tax to 5 percent in the lower income slab.
The application of the much feared provisions of indirect transfers in case of category I & category II investors have been exempted resting the controversy created by the CBDT Circular and the proposal to abolish FIPB is a welcome move and would lead to creation of investment opportunities for foreign investors.The extension of the concessional withholding tax of 5% on interest on external commercial borrowings including Rupee denominated Masala Bonds for a further period of 3 years up to June 30, 2020 is encouraging.
The real estate sector has been offered a much needed helping hand by extending the Affordable Housing Real Estate Scheme period from 3 to 5 years, reducing the holding period for long-term capital gains from 3 to 2 years, and by requiring payment of income tax by landowners under a JDA only on accrual of revenue.
The Government also reiterated its commitment to ‘Make in India’ by extending income tax benefits for startupsby giving tax holiday for three years within a period of seven years.
Reduction in the time limit for filing tax returns and completion of tax assessments, is a positive step towards improving the tax administration and expediting the grant of tax refunds to corporate India.Though abolition of MAT would have been much wanted by Industry, allowing carry forward of MAT for additional five years should give some relief to the corporates.
Further, reassurance that the government is up to speed on GST implementation work, including IT preparedness is good news and reaffirms the collaborative and inclusive approach of the Government to effectively implement GST.
While the exact impact of the Union Budget 2017-18 can only be assessed upon examining the fine print,Budget 2017 is a booster budget focusing on stimulating growth, promoting digital economy and improving tax administration and one expects this budget will play its part in lifting the Indian economy onward and upward"
Quote on Budget 2017
Budget 2017. Founder, Director and Chief Software Architect, Konnect insights
“The 2017 budget is appreciable as digitalization is the main focus of the budget. The budget also focuses on encouraging the emerging industry to grow by reducing the corporate tax for companies with less than 50 Crore annual turnover. The proposal of new initiatives for the digitalization through Make in India will also continue to open more employment opportunities for the youth. This will help to take our country to a brighter future.”