Suresh Rathi President – Vidarbha Industries Association
Recognition of the wealth Creator & announcement of Taxpayers Charter shows the commitment of the Government to create transparency in the country. To promote exports, NIRVIK scheme announced in the budget will definitely lead to high insurance cover with lower premium & simplified procedures for claim settlement. It will further encourage export finance. For start up, deferral of tax impact on ESOP plans is a much needed step by the Government.Removal of Dividend Distribution Tax (DDT) is welcome & much needed move. However, by making it taxable fully in the hands of the recipient, the tax impact would be continued. The new personal tax rate regime may not benefit the masses as it would discourage saving. On MSME front, raising the turnover threshold for audit for businesses from Ra 1 Cr to 5 Cr is welcome. By enabling NBFCs to extend invoice financing to MSMEs through TReDS can certainly enhance the opportunity to fund the Indian economy. Extension of GEM e-marketplace as a unified procurement channel should bring more vendors (from the current 3.2 Lakh) onto the platform.
Government looks to be in a mood to move its development in line with PPP model which has inherent limitations as it gives less freedom to the investors. Disinvestment of LIC will result in capital receipt in the hands of the Government which ideally should be used for capital investment only. The total receipt and expenditure figures show that it will be very tough to keep the fiscal deficit to the desired level of 3.5% and also achieve a desired GDP GROWTH.CA Naresh Jakhotia– Expectations were high from the FM for the Budget 2020. None of the benefit has been given whole heartedly. Tax rates are reduced but with a rider that no exemptions /deductions would be admissible.
Even standard deduction for salaried taxpayers, deduction towards interest on housing loan, etc are not eligible for deduction for opting the new tax regime. It will add to complications rather than simplifications as taxpayers would be required to do tax calculations under the old regime vis a vis new regime before filing the return. Though option is given to taxpayers whether to opt or not to opt for the new scheme, but it’s like a one-time offer for businessmen and taxpayers are not allowed to change it on year on basis except on one occasion. Affordable housing scheme for one more year and additional deduction towards housing loan interest is a welcome move. Further, variation between actual value vis a vis stamp duty value in respect of real estate transactions results in notional taxation and keeping transactions with difference up to 10% as against 5% earlier will not reduce its chronicle impact. Firms & AOP are still subject to higher tax rate vis a vis corporate, individuals & societies. Though the Dividend Distribution Tax (DDT) is abolished, the recipient is made liable to pay the tax on it.
Prashant Mohota, Former Vice President – VIA, MD – Gimatex Industries Pvt Ltd
Textile: 1. Provision of 1450 cr. for technical textiles is a good step
- Quality norms for all products being laid down is a step in right direction
- Inclusion of power generation for lower deduction of Income tax will help new investments
Removal of ANTI DUMPING on PTA, which is a major raw material for polyester staple fibre a very welcome step.
Sachin Jajodia, Convener of VIA Taxation & Corporate Law Forum
Taxation: The budget has highlighted tax benefits to individual tax payers and startup units. The abolishment of dividend distribution tax has to be studied as there no clarity if this will have a positive impact on society.
Focus on capital investment by government and good quality production is very very welcome initiative which will result fruits in future. Focus on education sector is also welcome.
Dr. Suhas Buddhe
Agriculture: 16 Points are proposed by the Finance Minister in a budget to boost the agriculture is very good initiative. If the proposed point action plan implemented in a right spirit, it can boost the agriculture sector tremendously.
CA Yashwant Bhojwani
Food Processing: Hon’ble FM has proposed to boost the warehousing infrastructure by constructing more warehouses through FCI. Also FM proposed to create seamless cold storage chain for perishable commodities. Proposed to formulate & implement National Logistics Policy. We hope that these initiatives will help to strengthen the existing food processing infrastructure and facilities. All are welcome step but more was expected.
R C Plasto Tanks and Pipes Private Limited
20 lacs Solar Pumps to farmers.
DDT removal will add tax burdened.
Tax dispute settlement scheme is good step.
Nothing specific for purchasing of good is specified.
IT & ITEs: The initiative and constant commitment towards digitization is commendable. Its helping connect more and more people across all strata. Creating more business opportunities and employment. I/ ML etc in longer term will greatly help in tracking and analysis of performance of various schemes, etc.
IT & ITEs : The thrust and emphasis on IT in governance, direct tax, and indirect tax continues.
Government recognizes : “Data is the new oil”. Creating of new Data Centre Parks throughout the country. On line initiatives in education (Degrees by 100 top ranking universities) is welcome step. A centralized recruitment agency with on line exam will be a welcome step.
Defence: Since no specific announcement made in speech, unless budget speech appraisal is made comments are reserved. However last budget specifics, Policy initiatives: If continued augurs well.
1) Custom duty exemption for import of machines not manufactured in india needs to be continued.
2) Disinvestment in DPSUs.
3) Increase in minimum public shareholding in listed companies from 25 to 35 %. Additional resources could be moped up by offering shares of listed DPSU which does not meet listing norms
4) Abolition of Angel tax for startup and ESOPs IT exemption is good initiative. It will enable Startups to focus on Innovation and enable ease of operations.
5) ‘Make’ project needs renewed focused to sustain MSME participation in defence prodcution and procurement.
6) Budget allocation for Modernisation needs strong support to bridge the shortage of last several years.
Electronics: Bringing new schemes for encouraging electronics manufacturing like semiconductor, medical equipment, mobile is welcoming step. Handholding by government for this is necessary.
Building data Center parks will be a one more step in the direction of new digital and high-tech India.
Bharat Net is also a welcoming step. The details of the scheme yet to come. Without handholding by government electronic manufacturing will be difficult so the schemes must focus on that.
Reeta Lanjewar Chairman, VIA – Lady Entrepreneur’s wing
There are some positive amendments in schemes for Women and Child welfare…But as a lady entrepreneur looking at the budget there is no obvious amendments from the last budget. Few New schemes for Lady Start ups and for working Capital were expected. Not very enterprising budget.
For SME’s there is little changes in tax slabs which seems beneficial but will clarify in future.
The NIRVIK Scheme for export of products from small manufacturers is a welcoming scheme if the documentation is not very difficult. It will surely encourage small manufacturers for export of their product.
Insurance cover for a depositor will be raised to Rs 5 lakh from Rs 1 lakh: another long overdue measure.
There are some additional allotment of funds for Agriculture, pumps, Solar, for Education and skill development which is welcoming. In travel and tourism 5 new archaeological places to be turned into Iconic Places will be a good move for the economic development of our country.
Iron & Steel: Nothing specific was said about the Iron & Steel. Although few big announcements regarding infrastructure sector were made, however they were not backed by expenditure or revenue members.
Some announcement made here:
1) New spending of 17 Lacs crores on transport infrastructure
2) 100 new airports to be built
Whenever these announcements implemented shall definitely boost Iron & Steel consumption and increase in demand.