Union Budget 2017-18: Fiscal prudence has prevailed over populism says Sonu Iyer

Personal Tax - Sonu Iyer, Tax partner & people advisory services leader, EY India

Glad fiscal prudence has prevailed over populism. Budget continues the agenda of growth for all and focus on global and India realities. The FM recognised the contribution of the salaried class to the Tax Revenues yet did not meet the expectation of Standard Deduction of this class of tax payers. However a tax saving for all is proposed  by reducing the rate of tax from 10 percent to 5 percent for the income slab of Rs 250,000 to Rs 500,000.  So for income  up to Rs 300,000 no tax payable.  Simplification of tax return forms for income up to Rs 500000 provided no business income. LTCG period of land and building reduced to 2 years from 3 years. Fine print of the budget document will surely have more details.  

Corporate Tax - Garima Pande, Corporate Tax Leader, EY India

Announcement to reduce the corporate tax rate for MSMEs to 25 percent is a line with the stated road-map for reduction of corporate income tax rates in India and is welcome announcement.  Reduction in the period of holding of immovable property for long term assets to 2 years and extension of benefit of 5 percent withholding tax rate on interest on ECBs and Masala bonds to 2020 shall provide much needed impetus to the Indian Real Estate and Infrastructure industry. Reduction in the time limit for filing tax returns and completion of tax assessments, is a positive step towards improving the tax administration and expediting the grant of tax refunds to corporate India.  However, absence of any announcement on tax incentives for large corporate tax payers in India is a disappointment.