Finance Minister Arun Jaitley will present the Union Budget 2018-2019 on February 1. This is going to be the first Budget post GST implementation and the last of the BJP-led NDA government before the 2019 General Elections.
Industry and public at large have large expectations from the Finance Minister, considering the slowdown in several sectors post demonetization and GST.
We spoke to informed Puneites and experts to understand what citizens expect from the Union budget 2018-19:
CA Vivek Brahmankar, Chartered Accountant, Associate (PT) Lecturer – BMCC, Pune: This Budget, is expected to lift overall sentiments of the people at large and should be focusing on infrastructural development thereby accelerating the economic growth rate .
Direct tax reforms are very much on cards and one would expect:
- Standard deduction – Re-introduction of Standard deduction for salaried class at 30% of
- salary, restricted to Rs 3 lakhs
- Increase in tax saving investments: Present limit of 150000 u/s 80C needs to be increased to Rs 250000
- Corporate tax be brought down to 25%, for all corporate assesses, irrespective of any turn over limits
- Corporate dividend distribution tax (DDT) be reduced to 10%
- Increase in basic exemption limits from Rs 250,000 to Rs. 300,000.
- Revision in income tax slab rates with maximum tax slab of 25%.
- Abolishing tax on dividend received in excess of Rs 10 lacs.
Rationalisation and Reduction of GST rates: There has been a rise in prices of certain products and services after GST was introduced. The general public would like to see cutting down on GST rates on insurance products, education, transportation and such other essential products and services that are used by people at large.
Pankaj Kasht, Director, GNR Solutions Private Limited: We are having following expectations from budget 2018:
- Accelerated depreciation on IT products: As per the CBDT notification no. 103/2016 dated 07 November 2016, the highest rate of depreciation will now be restricted to 40% with effect from 1 April 2017.
- Considering the fast obsolescence rate of IT products and equipment, computers, software etc. due to rapidly changing technology, it is expected that depreciation at 60% on computers and computer software be retained.
- Reduction of GST rates: There has been a rise in prices of certain products and services after GST was introduced. The general public would like to see cutting down on GST rates on insurance products, education, transportation and such other essential products and services that are used by people of all category.
Abhijeet Joag, Director, Pratisaad advertising agency: I think it should focus on getting the banks out of their financial crisis to boost investment and the liquidity of funds.
Also, there is an urgent need to look after the rural distress which is currently of utmost importance.
Pankaj Thadani, Financial Consultant: Based on the current overview of the 2018-19 budget and what we hear, it seems to be in line with what the country currently needs.
It should concentrate on the generation of employment and also the needs of the farmers.
Prashant Zarkar, Sr LIC agent: Maximum rebate on the tax saving investments would let people to save on their taxes.
Also, Mediclaim premium limit is only INR 25,000 currently, this should also move a few slabs ahead to let people get full benefits.
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#All views expressed in this article are those of the individual respondents and Pune365 does not necessarily subscribe to them.
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