BHOPAL (Madhya Pradesh): Union Budget evoked mixed response from industrialists and analysts in Bhopal on Tuesday. Excerpts of what they said.
Remuneration limit increased
CA Rajesh Jain: Under new tax regime, standard deduction has been increased from Rs 50,000 to Rs 75,000 for salaried persons. Similarly, relaxation has been increased from Rs 15,000 to Rs 25,000 under family pension. TDS rates rationalised from 5 % to 2%. Remuneration limit has increased and a TDS of 10 % introduced on all payments to partners.
Boost for MSME
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Federation of MP Chamber of Commerce and Industries president Dr RS Goswami: Mudra loan increased from Rs 10 lakh to Rs 20 lakh, which will boost MSME. Simplification of GST will also help traders. Proposal of industrial parks in 100 cities is a good sign.
Angel tax abolition big benefit
Confederation of All India Traders state president Bhupendra Jain: Proposal to boost tourism will help Madhya Pradesh. Pro-MSME proposal will help industries in the state. Target fixed for 1 crore houses under PM HFA-02 is a good step. Reduction in customs duty on gold and silver to benefit jewellery sector. Abolition of angel tax will boost Indian startup ecosystem.
Jolt to share market
Kalpatru Multipliers Private Limited MD Aditya Manya Jain: Hike in tax on share traders income is big jolt to share market players. TDS rate on e-commerce operators to be reduced to 0.1% from 1%. New tax slabs and standard deduction will strengthen economy. It will increase financial burden on high net worth.
Industrial parks to enhance economy
Bhopal Chamber of Commerce and Industries spokesman Ajay Devanani: 100 plug and play industrial parks and 12 industrial corridors will enhance economy. Mudra loan limit from Rs 10 lakh to Rs 20 lakh will boost industries. Abolition of Angel Tax is a big relief for start-ups. Short term gains on certain financial assets will be 20%.
Will harm investors
Confederation of Real Estate Developers' Associations of India general secretary Manoj Meek: 20% tax on short term gain while 12.5% on long term gain may harm investors. No solid provision in budget to achieve target of 1 crore houses under PM HFA-0.2. Tax payers will not get relief as there is no drastic change in tax regime. Budgetary deficit is 5.1 per cent of GDP, which is still high.
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