Revision of tax slabs was an eagerly anticipated positive, but it has been offset by the rider of forgoing exemptions/deductions. Nevertheless, individuals have the option to continue with the prevalent tax structure. Lack of relief in long term capital gains tax and taxability of dividend distribution tax in the hands of recipients may disappoint retail investors.
Measures to attract foreign capital, undertake disinvestment (especially through LIC stake sale via an IPO), facilitate consolidation of public sector banks and offer relief to MSMEs are some of the green shoots. It remains to be seen if such announcements are backed by an equally robust execution strategy."