This year Budget seems very important as this time the budget will be present by our very first woman full-time Finance Minister Nirmala Sitharam after taking over from the previous Finance Minister, Mr Arun Jaitley under the second term of Modi volume two government. In February, Mr Piyush Goyal had presented the Interim Budget, which had able to cheer the Indian economy. Furthermore, the government had revised and showed more concerned over Insolvency and Bankruptcy Code, 2016 (IBC), Benami Transactions (Prohibition) Amendment Act, 2016, Real Estate (Regulation and Development) Act, 2016, Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
As we know, budget is a financial plan for a defined period, often one year. Being an Indian citizen or corporate entities is eagerly waiting for this budget especially middle class, which is imperative form business restructuring:
- Income Tax exemption limit: The finance minister rebate full tax exemption limit for individuals to Rs 5 lakh of their annual income on this interim budget, may not have room to cheer in this segment.
- Higher Section 80C Deduction Limit: The FM is also focusing on investment and savings category, which falls under the Section 80C of the IT-R. Currently, the limit is set is Rs. 1.5 lakh could be raised to Rs 2 lakh or above.
- More focus on healthcare benefits: As rural and urban areas are suffering from a deteriorating environment situation. We expect the government will increase deduction under tax saving instruments available in healthcare and the tax saving comes under 80D of the Income Tax. The limit could increase from the current Rs 25,000 applicable to Rs 50,000.
- Relief on Corporate tax rate: The Industry is expecting relief in corporate tax slab to boost the revenue of the company. Last year, the corporate tax rate reduced to 25% from 35%, may reduce this year to 21%.