1. Continuation of the 10A benefits under the STPI schemes: It is likely that most of the proposals on direct tax frontage will essentially tread towards the Direct Tax Code I think in this Budget one final extension of a year is only logical…and this will be exceedingly supportive. 2. Reduction in MAT rate: Contrary to industry expectations for a roll back in MAT levy in the last Union Budget, there was infact a net increase of 2.936% in the MAT rate. This should (atleast) be restored back to 15% as in FY 2009-10. 3. Reduction in corporate tax rate: In view of the fact that the present Budget is expected to be transitional in nature that would pave the way forward for DTC, it will be commendable if CTR in FY 2011-12 is brought down to match the proposed rate of flat 30% in DTC. 4. Re-fixing tax slabs for individuals: As the most compliant section of taxpayers, the salaried class must receive some preferential treatment. To offset the mounting inflationary pressure, individuals are expecting to witness shifting of slab as envisioned in the DTC i.e. raising the first slab of 10% to INR 10 Lacs in lieu of the currently prevalent slab of Rs.5 Lacs. This would bring substantial savings to the salaried class.
Thursday, February 17, 2011
Karandeep Singh, Managing Director - India, Sapient
1. Continuation of the 10A benefits under the STPI schemes: It is likely that most of the proposals on direct tax frontage will essentially tread towards the Direct Tax Code I think in this Budget one final extension of a year is only logical…and this will be exceedingly supportive. 2. Reduction in MAT rate: Contrary to industry expectations for a roll back in MAT levy in the last Union Budget, there was infact a net increase of 2.936% in the MAT rate. This should (atleast) be restored back to 15% as in FY 2009-10. 3. Reduction in corporate tax rate: In view of the fact that the present Budget is expected to be transitional in nature that would pave the way forward for DTC, it will be commendable if CTR in FY 2011-12 is brought down to match the proposed rate of flat 30% in DTC. 4. Re-fixing tax slabs for individuals: As the most compliant section of taxpayers, the salaried class must receive some preferential treatment. To offset the mounting inflationary pressure, individuals are expecting to witness shifting of slab as envisioned in the DTC i.e. raising the first slab of 10% to INR 10 Lacs in lieu of the currently prevalent slab of Rs.5 Lacs. This would bring substantial savings to the salaried class.
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