Measures that are targeted to ensure desired growth include –
1. The startups, having huge potential of generating new employment opportunities, are being given a whole set of tax benefits.
2. Basic customs duty on certain items are to be increased to ensure the proud goal of Make in India.
3. Import of defence equipment is not manufactured in India are exempted from basic customs duty. This proves ‘No Compromise’ approach with regard to crucial defence budget for ensuring ‘Neighbouring Countries Envy, Indians Pride’ status.
4. To provide further impetus to concerned real estate developers and buying affordable housing costing less than Rs 45 Lacs, additional deduction of 1.5 lakh rupees on interest paid on loans borrowed upto 31 March 2020, is a welcome step.
5. To ensure much needed social security measures for 3 Crores Retail Traders, for the very first time, pension benefit is planned to be extended under Pradhan Mantri Karam Yogi Man Dhan Scheme.
6. To go ahead with demonetization drive and ensure more transparency, budget proposes to discourage the practice of making business payments in cash. The government proposes to levy TDS of 2% on cash withdrawal exceeding Rs 1 crore in a year from a bank account.
7. Additional income tax deduction of 1.5 lakh rupees on the interest paid on the loans taken to purchase electric vehicles is really a futuristic step. It is going to reduce inflation in the long run, as the cost of imported fuel would get reduced because of gradual reduction in its demand.
To summarise, the favourable results of the budget proposals are expected to be witnessed in the coming years.