It is a mix of a populist and a progressive budget with an emphasis on fiscal prudence: Swati Bhargava, CashKaro.com

India Infoline News Service | Mumbai | February 01, 2017 18:46 IST

The budget has not offered big tax sop to corporates but has announced reduction of the corporate tax rate from 30% to 25% for those with an annual turnover of up to Rs 50 crore.

Swati Bhargava, Co-founder, CashKaro.com
Good part about the budget is that it is extremely focused on the core that forms Indian economy: Rural, Agriculture, SME and Middle Class. As a woman entrepreneur I also appreciate the special emphasis has been given on women empowerment in the Budget as the FM has allocated Rs 1.84 lakh crore for women skill development. The budget is focused on propelling the digital economy of the country though benefits to startups could certainly have been more.

Concessions to startups have been limited and only startups which are recognized by DIPP will pay tax on profits for three out of seven years, increased from three out of five years. The budget has not offered big tax sop to corporates but has announced reduction of the corporate tax rate from 30% to 25% for those with an annual turnover of up to Rs 50 crore.

It was heartening to see the increased allocation towards public expenditure and building infrastructure in India which now includes affordable housing as it will encourage long term growth. At last GST Council finalized its recommendations but till the time it is implemented no change in excise and service tax rates for now, which could have been considered. FM has recognized the contribution of the salaried class to the Tax Revenues yet I feel did not meet the expectation of Standard Deduction of this class of tax payers.

It has only proposed to reduce existing rate of taxation of those with income between Rs 2.5 lakh to Rs 5 lakh from 10% to 5%. Overall, I feel it is a mix of a populist and a progressive budget with an emphasis on fiscal prudence.

The author is Swati Bhargava, Co-founder, CashKaro.com.
 

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