Budget 2016 India: Good pragmatic balancing act: Girish Vanvari

Girish Vanvari, National Head of Tax, KPMG India

Budget 2016, an incremental move in the backdrop of global uncertainty, maintaining a fiscal deficit of 3.5 percenta very credible step for the financial markets, robust outlays for infrastructure, agriculture, rural and socio economic schemes, however, one can argue that more could be provided for recapitalisation of Banks.  No change in capital gains tax regime for listed stocks a positive for the stock exchange,  however an additional tax 10 percent on dividends in excess of 10 lakhs and increase in STT on options is a dampner for the markets. No change in individual slabs, POEM deferral, GARR confirmation,  action point on BEPS master file and country by country report,  road map to reduction to lower tax rates and phase out of exemptions along expected lines.  Introduction of  Amnesty scheme can be questioned.  Further, many provisions to build confidence with the tax payers with a view to reduce litigations and commitment to no retrospective amendment. All in all,  in the backdrop of the prevailing global scenario, Budget 2016 a good pragmatic balancing act.