Skip to main content

*Yet other headline budget but to disappointment*





*Yet other headline budget but to disappointment*

As in past this budget is announced to make newspaper headlines. The budget doesn’t seem to give actual benefits.

1.     No outright tax exemption up to 5 lakhs but instead rebate has been increased from Rs. 2,500 to Rs. 12,500. This means that person having total income exceeding 5 lacs would not get any relief. His tax slab would remain at 2.50 lakhs only.

2.     Other announcement which the government made on increase in tax exemption on bank interest, upon analyzing the finance bill, it has come to light that this limit increase from Rs. 10,000 to Rs. 40,000 is only for purposes of tax deduction by bank. The interest in excess of Rs. 10,000 continues to remain taxed.

3.     Also tax on notional rent has now been exempted in respect on two self-occupied houses but the benefit of interest on loans on these two houses collectively has been kept same at Rs. 2 lakhs. Which means that deduction of interest per home has effectively been reduced from Rs. 2 lakhs to 1 lakhs where person invests in two houses.

4.     Benefit of sale of house property and option to buy two houses to save capital gains tax have been given only once during the life time of taxpayer and that too where the capital gains does not exceed Rs. 2 crores. Since most of the parents possess very old ancestral properties and this government has also changed the Cost inflation index base year from 1981 to 2001 and jump in real estate prices most of the cases are bound to have capital gains more than Rs. 2 crores. There comes no actual relief to taxpayers. 

5.     As far as measure to incentivise the farmers is concerned we feel this sector certainly needs encouragement in terms of subsidies and higher MSPs. But the government had announced interest subvention scheme of 2% in interest rates and 3% in case of timely payment of loans. This means no exemption but the burden to that extent shall be shared by the government. Giving better price to the farmers for their produce was better option. The method of calculate cost for 1.5 MSP remains the confusion at present. 

6.     Along with this, government has announced a yearly Rs. 6,000 income assurance to farmers having land less than 2 hectares. This puts additional burden of Rs. 75,000 crores on the government of India. This amount means almost 2 months collection of Central GST going into that scheme. When the country is struggling with fund crises, such burden would further make situations worst. Also during such high inflation mere Rs. 6,000 for 365 days would not make much difference. Instead this will be big reason for demotivation. 

7.     Apart from these two sectors there had been no real announcements which would have increased employment or dealt with problems of poverty and increasing dissatisfaction in minds of the people. 

All in all we feel that this budget is pure #VoteBank budget to make highlights with no actual relief flowing to the people at large. Once again reading the Finance Bill 2019 in between the lines was a huge disappointment.

*Regards*
*CA. Keshav R Garg*
*98880-90008*

Comments

  1. Credeb Advisors8 February 2022 at 06:02

    Hi, Thank you for sharing the information. credeb advisors are the best CA in Delhi provides all chartered accounting services in budget friendly accounting companies in Delhi

    ReplyDelete

Post a Comment

Popular posts from this blog

Renting of Warehouse for Agriculture Produce – Taxable under GST

In the case of Rishi Shipping – Gujarat Authority for Advance Ruling has cleared the air that Storing/warehousing and renting of immovable property are two different type of services. Merely because the agricultural produce is stored in an immovable property it would not classify it as Storage and Warehousing Services. Therefore the same shall not be covered under S. No. 54 of Negative List (Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017), hence taxable under the purview of CGST and IGST Act. The Authority held that in order to classify a service as Storage and Warehousing, it should be coupled with loading/unloading/packing services etc. The authority was of the view that where mere building is let out, it shall be classified as renting of immovable property which is chargeable to tax. It is the composite supply, principal supply being renting of immovable property for storage of agricultural produce which is exempt from tax. It further held that once the...
19 comments
Read more

GST Registration in case of Renting of Immovable properties:

GST Registration in case of Renting of Immovable properties: By CA. Keshav R Garg 1.      Let us first understand that the place of registration is decided by the term place of business as defined by section 2(85) of the CGST Act 2017. As per the definition of “Place of Business” it is a place from where the business is carried on and/or where a warehouse or any other place for storage of goods is located and/or books of accounts are maintained and/or the business through agent is carried on. It nowhere considers “place of supply” for determining the Place of business for the purpose of GST Registration. Hence, place of supply has no impact as far as GST Registration is concerned. 2.      As per section 22 of the CGST Act 2017, a person is liable to take registration from the place he makes a taxable supply. There is a distinction in place of supply and place from one makes taxable supplies. Place of supply is derived to conclud...
59 comments
Read more

24 Important FAQ on Punjab State Development Tax Act 2018

24 FAQ on Punjab State Development Tax Act 2018 By CA. Keshav R Garg, +91-98880-90008 1.       Who is required to pay Punjab State Development Tax? The Tax is applicable on the person situated in the state of Punjab. The term person as per section 2(j) of the Act covers “person who is engaged in any profession, trade, calling or employment in the State of Punjab and includes a sole proprietor, a partnership firm, a Hindu Undivided Family, a Company, a Society, a Trust, a Club, an Institution, an Association, a local Authority, a Department of any State Government, Union Territory Government or Central Government, a Government enterprise, a statutory body or other body corporate, irrespective of the fact that the main place of business of such person is outside the State of Punjab and where the main place of business of any such person is not in the State of Punjab, the local manager or agent of such person in the State of Punjab in respect of such b...
8 comments
Read more