Experts see Budget as the right cure for an ailing economy that will be remembered for long
It is a “get-well-soon” Budget that sticks to the promise of being one that will be “remembered for 100 years” – that’s been the commonest reaction as Outlook Money reaches out to experts to find their views on the proposals tabled by Finance Minister Nirmala Sitharaman on Monday.
Welcoming the Budget, Krishna Kumar Karwa, Managing Director of Emkay Global Financial Services, says the Budget with no changes in direct taxes will certainly be remembered for years to come. “Equity markets will be enthused with no tinkering in capital gains taxes or STT or any form of Covid tax. The proposals to privatise two PSBs and one general insurance company is noteworthy as is the increase in FDI limit in insurance to 74 per cent,” he says.
“Tax buoyancy, successful divestments and quick monetisation of operating infrastructure assets remain a key to achieving the fiscal deficit target of 6.8 per cent for FY21-22,” Karwa says.
Divakar Vijayasarathy, Founder and Managing Partner, DVS Advisors, believes that for the first time, the taxpayer may not complain for not reducing the rates and appreciate for maintaining the rates, given the extent of fiscal deficit.
“The exemption from filing ITRs for senior citizens with only pension and interest income is definitely welcome. The most important relief for all businesses would be the reduction in time limit for reopening of assessment from six to three years for normal cases and only in the case of concealment of income of over Rs 50 lakh, it has been retained at 10 years. This would go a long way in boosting investors’ confidence and ensuring tax certainty,” he says.
Given the challenging scenario, the Budget has been largely positive, thinks Dr Niranjan Hiranandani, National President of NAREDCO. “No major taxation enhancement is something that is welcome. As the prime minister pointed out that last year saw mini budgets across the pandemic-impacted time frame; the unsaid thing for most industries across the economy is that similar steps may happen with more positives in the offing. Continued focus on ‘Minimum Government, Maximum Governance’ will enhance ease of doing business. The government spending will provide stimulus for GDP growth, and is laudable,” he says.