This year the budget has a different flavour all together. Last few budgets were accommodative budgets, this year the budget could be a hope budget. Every individual is aware that things will not change overnight, so a pragmatic approach is already built in the thought process; hence the task of the new majority government is to make right moves which will not daunt the hope of 130 crores Indians .
The budget should be a qualitative budget than quantitative budget, 6 months is not going to change the Indian economy's numbers, every action initiated will take some time to reflect in the economy and these conceptual and pragmatic moves by the government will build in the required momentum and hope for "Ache Din".
Decisive direct tax regime for better tax planning and corporate expansion, removing ambiguities in existing tax laws to avoid double taxation will boost corporate confidence of both Indian and foreign companies. Revisiting MAT provisions for SEZ and clarifying the status on DTC will bring in the required clarity.
Rolling out GST will ease out the existing multiple tax culture and the fight between state and centre on taxing transaction, thereby giving clarity to Indian business house to structure it's trade policies.
The e-governance initiative is a big and logical step to broaden the tax base, but unless it has a proper grievance re-addressal mechanism, it will not be appreciated by tax payers, instead of just one central processing centre (CPC), the government should have nodal offices across cities where tax payers issues will be addressed with speed. In case there is a process flaw, some alternative approach should be allowed so that the corporate actions are not hampered.
Young salaried class should be rewarded for being the genuine tax payer, they are the first who pay TDS and then take home the net salary. The housing needs in this class are growing, some sop on the interest rates, increase in allowable deduction on account of interest and principal on housing loan and also increase in the amount of medi-claim should be looked into, and this is certainly impacting their savings. The conveyance allowance can also be looked into to be fair to this honest class of tax payers.