Profit

Very Limited Scope For Major Changes On Tax Front

 Share
EMAIL
PRINT
COMMENTS

Whether the Budget to be presented by the NDA government will be vote on account or something more will only be known on February 1 when the Finance Minister Arun Jaitley presents the Budget 2019. Enough hints have been dropped to indicate that the Budget will not be a mere vote on account.

However, a very limited scope is available to the government to make major changes on the tax front. With 2019 being the election year, there is expectation from the common man that some relief be granted in tax rates and deductions, and the government may oblige the common man by raising slab rates by about Rs. 50,000. This will have a very positive sentimental impact without sacrificing large revenue.

On the corporate tax front, very little may be done by the government. Not much is expected in terms of reliefs as finances of the government are stretched.

Major changes are also not expected in Goods and Services Tax (GST) as all amendments have to be approved first by the GST Council. The GST Council has already made substantial changes in the last two meetings. Besides, for the changes expected by the real estate sector, the government has recently set up a committee.

However, this Budget will give the government an opportunity to make grand announcements for the things to come in future if a BJP government is elected. Notable announcements can be expected on availability of credit to the rural, MSME (micro, small and medium enterprises), health and farming sectors.

(Ashok Shah is Partner at N.A. Shah Associates LLP)

Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of NDTV and NDTV does not assume any responsibility or liability for the same.



Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.

NDTV Beeps - your daily newsletter

................................ Advertisement ................................

................................ Advertisement ................................

................................ Advertisement ................................

Top