Union Budget 2016: Great Expectations

CA Vikram Aggarwal

Come February and comes in the mind of every tax professional and every Indian citizen the ‘great expectations’ from the Annual Union Budget. But the question is whether these expectations would see the light of the day or would submerge in the darkness of gloom (or would become an NPE……a non performing expectation!)

Should economics be completely separated from politics? Can economic decisions be disconnected from political decisions? Can there ever be a day in our country when decisions are guided solely by national interest?

Can there be a budget that heeds to not only the FDI class but also to the expectations of the small businessmen or small industries?

Can the budget and the related Income Tax and indirect taxes boost ease of doing business in India? Can the budget ensure equality of distribution of wealth?

The questions could be endless implying that there is a huge scope for improvements and amendments that could be brought about in the direct tax and indirect tax regime through the Budget.

Although, I would have liked to be a bit descriptive about my ‘great expectations’ from the budget but, I would rather keep it crisp. So my expectations would go as under:

• Widening of the tax base by removing capital gains exemption on sale of rural agricultural land since the same does not amount to agricultural income;
• Proper clarity on re-opening of Income tax assessments u/s 147/148 of the Income Tax Act, 1961 and whether the cases re-opened would be assessed afresh or the assessing officer would restrict only to the reasons on the basis of which the case has been reopened;
• Bringing standard deduction at 20% for the salaried class;
• Bringing proper rules for giving exemption and for assessments to educational sector u/s 12A and section 10 from Income tax so as to avoid litigation;
• Taxing the super rich by levying 10% swach bharat cess on individuals or HUf with incomes more than Rs 75 lakhs;
• Give Income tax exemption to units that take up solid waste management at District levels and municipalities;
• Banning Cash transactions in sale or purchase in all kind s of transactions say above Rs 50000;
• Clarity on service tax issues particularly service tax on freight etc;
• TDS returns be made half yearly and clarity on TDS on freight payments;
• Increase in public spending to boost the economy.

It is believed that simplicity is the best policy. Simple and clear amendments would instill confidence and boost consumer sentiment.

Hope our expectations reach to the authorities concerned.