With huge amount of investments in the rural sector and relief for small tax payers, Union Budget 2016 was largely pro-rural and pro-poor with focus on the rural sector, electrification and infrastructure.

 

Finance minister Arun Jaitley laid the target of containing India’s fiscal deficit to 3.9 per cent this fiscal year, 3.5 per cent in FY 17 and 3 per cent in FY 18 and emphasizing on three priorities namely strengthening India’s firewalls by ensuring macroeconomic stability and prudent fiscal management; driving growth through domestic demand; and reforms to boost economic opportunity.

 

On the other hand, budget also catered to the expectations of the individuals. Despite unchanged tax exemption limits, tax slabs, the budget did tend to address the deduction limits and unwind the India’s Tax Amnesty Scheme. The Budget tends to be of interest to the individuals by bringing:

1. Relief to small tax payers

2. Measures to moving towards Pension Society

3. Measures for Promoting Affordable Housing

4. Reducing litigation and providing certainty in taxation

5. Simplification and rationalization of Taxation

To read full article click: moneycontrol.com.

………….. In light of above benefits, budget could be seen as an economic growth booster & promoter of individual development. In conclusion, Budget can be seen as impressive and sets the tone for course correction, both at the fiscal as well as the regulatory front.

Alok Patnia has written this article on moneycontrol.com explaining government’s five point agenda for personal taxation in India.

Alok Patnia, CEO of Taxmantra.com has been actively involved in the start-up sector of India. He has been advising and mentoring a huge number of start-ups by providing them with necessary hand holding with regards to various issues like Entity Structuring, Funding, Tax and Regulatory compliances and allied issues. He is great insights on the business starting-up and maintenance issues. He is a qualified Chartered Accountant having post qualification exposure with Ernst and Young and KPMG at Bangalore.

He can be reached at alokpatnia@taxmantra.com.

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