SENSEX   27039.19    -269.41  (-1.00%)       |  NIFTY   8346.35    -88.75  (-1.06%)  |  Gold   28625.00    97.00  (0.34%)    |  Silver  41325.00   55.00 (0.13%)

Latest News:

Union Budget 2016 Expectations

By
budget less

Expectations from Budget 2016:

Wishlist from Individual taxpayers: Online survey conducted by ET wealth highlighted few demands from individual taxpayers..

1) Most of the taxpayers want balanced budget which will broaden the minimum amount after which they have to pay the tax and no increase in current tax rates.
2) Tax saving limit of INR 150,000 under section 80 c should be increased which can boost the financial savings in the system.
3) Most of the taxpayer's opinion is 14% service tax is too high and should be reduced a bit.
4) Other exemptions such as medical allowance limits need to be raised considering the cost of medical check-ups and medicines.
5) TDS rates needs to be revised is also expectation from most of the taxpayers

Few Macro level expectations:

1) Fiscal Deficit numbers: Govt. had earlier planned for fiscal deficit as % of GDP for 2016-17 as 3.5% from 3.9% in 2015-16. Considering the current global slowdown and domestic rural economy which is not picking up very well; govt may have to take a decision to spend more this year as well.
2) 7th Pay hike: How govt deals with pay commission hikes and try to fit in with its fiscal deficits budget is key to watch this budget.
3) Defence sector is further expected to see increase of 8-10% in its budget which previous year was at INR 2.46 Lac Cr and now in 2016-17 it is expected to touch INR 2.68 Lac Cr
4) Anti Dumping duty on chemicals imported from US: Govt may impose anti dumping duty ranging $15.5 and $127 per tonne on imports of chemicals from EU, US and other regions to protect domestic industry from below cost shipments.
5) Crude oil impost bill set to fall 40-45%: Because of crude oil prices which has slipped from $100 per barrel to almost 30-35$ range, govt's crude oil import bill is likely to drop by 40-45% this year. Last year in 2014-15 it was $113 billion.
6) 49% FDI in Insurance sector via automatic route is on the radar of the govt and it may be one of the sector to watch out for.
7) Gold policy reforms: Govt is planning to set up National Bullion Board, which will implement gold reforms on time to time basis. Duty on dore (unrefined) gold imports will be considered.
8) GST bill: Very important and necessary for overall investment sentiment of the country. It is important and challenge for govt that how they will go ahead with passing of GST bill in Rajya Sabha over the next few weeks
9) The opportunity for IT industry will be through 'Digital India' and 'Make in India'. The 'Digital India' initiative is going to necessitate strengthening of telecom and internet infrastructure as these form the back bone of this campaign which aims at making various government services available for citizens electronically.
10) Telecom sector is at the moment facing multiple taxes such as excise duty, custom duty, spectrum charges, service tax, TDS, Swatch Bharat Cess etc. Rationalization of these taxes will help the sector to sustain the cost pressure.
11) Last year budget has corrected inverse duty structure for Phones and Tablets and the industry saw almost double digit growth in both the segments. Likewise, it is expected that other electronic categories to get exemption like laptops, net books etc. Giving a level playing field will be helpful as India has the potential to manufacture electronics hardware for global markets besides meeting the country's future requirements in the converging areas of information, communication and entertainment.
12) Skill development: As govt is keep on skill development to promote the entrepreneurship and employability in the country; govt may take steps and give exemptions to institutions which are engaged into skill development programs.
13) Start-up India: Govt has recently launched its campaign of 'Start up India' and it is expected that Inr 10,000 Cr fund for investment in start-ups will be allocated. Also govt is planning to create supportive eco system for startups by giving them quick permissions thereby removing license raj and certain tax exemptions in first few years.
14) After recent fiasco of Vodafone tax issue, govt is now reconsidering its stance on retrospective tax and thereby wants to make sure it will send clear message to investors.

Comments (0)

No comments yet.


Leave a comment

(required)

No trackbacks yet.

??????