 "Budget gives an impetus to infrastructure sector: Nand Kishore")
Budget offers bonanza for individual assessee. Income tax rate is proposed to be reduced from 10 percent to 5 percent for individuals having income between 2.5 lakh to 5 lakh. Foreign portfolio investors (category 1 and 2) are exempted from indirect transfer taxation under Section 9 of the Income Tax Act, 1961. This would boost investment in the stock market.
Budget proposes to limit amount of donation to a political party by a single source up to Rs 2000. It is a much needed move to clean Indian politics and to have free and fair elections.
Dispute resolution in infrastructure projects in PPP mode will be institutionalised and is looked upon as a welcome move since currently there is no formal mechanism in place.
Budget provides impetus to real estate. The duration of long term capital gains for immoveable properties reduced from 3 years to 2 years. Base year for indexation advanced from April 1, 1981 to April 1, 2001. Builders treating unsold houses as stock in trade would not be subjected to notional rental income for 1 year.
Corporate tax rates for MSME with annual turnover upto Rs 50 crore reduced from 30 per cent to 25 per cent to give a boost to medium and small companies. Minimum Alternative Tax (MAT) not to be abolished but the benefit of credit of MAT to be extended from 10 years to 15 years.
Budget gives an impetus to infrastructure sector with allocation of a record Rs 396,135 crores for development of roads & highways, enhancement of storing capacity of crude oil, civil aviation, and solar energy development. Abolition of Foreign Investment Promotion Board (FIPB) indicate a move to ease and facilitate foreign investment.
As expected, there are no significant changes in central excise and service tax in view of GST. FM reassured the government’s commitment to make GST a reality soon.
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Nand Kishore is the tax partner at HSA Advocates
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