A large number of Indian corporates are expecting wide-ranging tax reforms in the forthcoming budget with a massive thrust to the infrastructure and defence sector, a survey of top 200 India Inc leaders conducted by Grant Thornton revealed. The budget will be presented this Saturday by Finance Minister Arun Jaitley.
On corporate tax amendments, an astounding 60% of the surveyed population anticipates clarity from the Finance Minister on "indirect transfers" and deferment of GAAR in the upcoming budget. Further, almost 70% of the respondents anticipate extension of deduction under Section 80IA to cover integrated townships, smart cities. However, most of the respondents (79%) believe that corporate tax rates would largely remain unchanged.
The survey shows that 41% of the respondents expect that the budget would provide indirect tax incentives to make ‘Make in India’ campaign a success. On personal tax front, the survey reveals that an optimistic 66% of the respondents anticipate a reduction in personal income tax rates.