Independent India's first budget had revenue estimate of just Rs 171.15 crore

Independent India's first budget had revenue estimate of just Rs 171.15 crore

This year, the markets expect more companies to enter the 25% corporate tax bracket. The Payment of Gratuity (Amendment) Bill, 2017, which is likely to be passed in the forthcoming Budget session, will make formal sector workers eligible for tax free Rs 20 lakh gratuity, at par with central government employees after implementation of the 7th Central Pay Commission.

While talking exclusively to Elets News Network (ENN), Industry experts have expressed their views.

"The most looked-forward-to corporate tax measure in this year's budget is rationalisation of the corporate tax rate", said Hitesh Gajaria, a partner at KPMG India.

Waman Parkhi, Partner, Indirect Tax, KPMG in India said: "GST rates of passenger vehicles to be rationalized from the current multiple tax rate structure".

Tax rebate on digital transactions can definitely help to boost digital transactions further and will create traction for the same.

As for the e-commerce segment, Ameen Khwaja, CEO and Founder, feels that while the sector has shown growth promise, it has largely been limited to the urban parts of the country. Also, there have been calls for reducing excise duty on petroleum products.

He may allocate funds proportionally to irrigation and crop insurance. With that, developers will be able to obtain loans at lower interest rates and the cost of construction will come down, thereby allowing projects to be priced more affordably for end users. The sector is reeling under deep crisis due to non-remunerative prices and growing debt burden. This can again be achieved with attractive tax slabs. Apart from widening and strengthening primary healthcare platforms, it is imperative that we strengthen our secondary and tertiary care in the country as well. And since the MSME sector in India plays a crucial role in providing large-scale employment at a comparatively lower capital cost; new schemes and initiatives can be expected. Higher out of pocket expenses signals out the lack of any financial arrangement or reserve to combat medical expenses.

- The telecom sector was vocal in its demand seeking a cut in GST rate from 18 per cent to 12 per cent.

In addition one issue which has remained unresolved for long time is place of supply of testing services, at present the same is based on location of service provider.

"Good health should be a fundamental right. With support of the Government, it can improve accessibility and affordability of quality healthcare services for everyone", he further said. In India, a new financial year begins in April. Sunil Kumar Sinha, principal economist at Fitch Group's India Ratings & Research, said the oil price increase will "straight away feed into the inflation, and retail prices of petrol and diesel would become a political issue as consumers will start complaining and there'll be pressure on government to do something".

With elections round the corner in 2019, the present Budget is an opportunity to put in place a mechanism that is able to effectively weed out any practical problems faced by the business community, provide stability and in the process put India securely on the track of development and progress.