Pre budget

by sravya surabhi Sun Feb 28, 2016 8:35 pm

Budget:
A budget is a quantitative expression of a plan for a defined period of time.

Expectations –Individual Tax Payers
·       Balanced budget
·       80c limit increase
·       Service tax
·       Medical Allowances
·       TDS
·       IT Exemption limit to increase to 3 lakhs from 2.5 lakhs

Expectations-At a macro level
·       Fiscal deficit: difference between income and expenditure(at present India’s fiscal deficit is 3.2%)
·       7^th pay commission: to increase in salaries and pensions
·       Deference Allocations
·       FDI thro automatic route: if FDI increases then job opportunities increases
·       Gold policy
·       GST bill
·       Digital India
·       Tax Concessions for electronic goods
·       Skill development
·       Start up India
·       Retrospective tax: tax on foreign companies

Expectations-Real Estate Industry
·       Project delay concerns
·       Housing loans and House insurances
·       Rent deduction limit

Expectations from CEO’s and CFO’s
·       73% simplified of tax program

India’s growth rate is at 7.3%

73% people say that 14% service tax is very high and it should be reduced.

Taxes to removed:
·       Wealth tax
·       Tax lap
·       Inheritance Tax
·       On equity share holders

Equity Market Expectations:
·       Duty cuts
·       Private sector investments triggers
·       Service tax cut in exports
·       STT(Security transaction Tax),SEBI Transaction Charge
·       Ease of KYC
·       Stable tax Regime

What can happen
·       Union budget 2016
·       Excise hike, Service tax hike
·       Agriculture focussed
·       Fund 7^th pay commission ,OROP
·       Disinvestment and spectrum
·       More focus on reforms and urban development
·       Banking reforms

Expectations-Railways
·       Fare hike to fund
·       Safety
·       Development

Start up Ecosystem
·       Start up definition
·       Compliance based self certification
·       Start up India hub
·       Patent
·       No capital gains/income tax
·       Setting up research parks