Budget Reactions: Budget tax stability to cheer investor-mood: Khaitan & Co

Sanjay Sanghvi
Khaitan & Co

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“Overall, the theme of the budget is directed towards growth momentum of the Indian economy as a long term measure and also providing stability and certainty of tax laws to boost investors confidence in India as investment destination.

Tax on super-rich was perhaps the compulsion on the part of the Finance Minister to raise additional revenue for the Government to address fiscal deficit problems.  However the increase of surcharge by almost 100% on Indian Corporates as well as foreign companies is something which may not go well with corporate sector.

On a more positive note, the government has deferred applicability of GAAR by two years to 1 April 2016.  One would need to see the fine print of the Finance Bill in terms of the scenarios where GAAR would be applied based on recommendation of Dr Shome Committee which reviewed GAAR provisions.”