The government's approach to the economy and how it wants to drive development will top the expectations of the manufacturing sector when finance minister Arun Jaitley will present his maiden budget on Thursday.
The industry is looking for a clear statement on the strategy with innovative measures to encourage investments both, local and overseas, generate employment, and drive growth.
Kedar Sabne, financial controller, Cybage Software Pvt. Ltd, said the budget should have quality as the next six months will not change the economy. "A decisive direct tax regime for better tax planning and corporate expansion, removing ambiguities in existing tax laws to avoid double taxation will boost the confidence of both Indian and foreign companies," he said.
The rolling out of goods and services tax 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 its trade policies, he added.
"The salaried class should be rewarded for being genuine tax payers. They first pay tax on deducted at source' basis and take home the net salary. Housing needs in this class are growing, some sops on the interest rates, increase in allowable deduction on interest and principal amount on housing loan and increase in the amount of medical claim should be looked into, as these impact their savings. The conveyance allowance can also be looked into," Sabne added.
A decisive direct tax regime for better tax planning and corporate expansion, removing ambiguities in existing tax laws to avoid double taxation will boost the confidence of both Indian and foreign companies.