Mumbai: Ratings agencies Crisil and India Ratings are of the view that there is not much to rejoice in the income-tax (I-T) exemption announced by Interim Union Finance Minister Piyush Goyal on Friday.
“The tax sops by themselves are not significant and the feel-good factor generated by it will only increase the consumption of low-value goods and durables,” Crisil said. Echoing Crisil’s view, India Ratings advised taxpayers to take it with ‘a teaspoon of salt’. The salaried class, too, are of the same view. Arjun Patil, a media professional, said: “I know it is like dangling an apple during an election. The working class can tell a populist budget from one with a good intention. Still, it is a good move.”
This proposal will benefit 3 crore taxpayers and the government will have to forego revenue to the tune of over Rs 18,000 crore. Another media professional, Mini, says she feels betrayed. “When I was in that bracket, I was struggling. Now, when I am out of it, this proposal has been implemented.” However, she is happy that it can help a lot of people to save, travel and use it for other things.
“With the exemption of tax on annual earnings up to Rs 5 lakh and increase in standard deduction by Rs 10,000, the disposable income of the low-income group will increase.”
Ramratthinam S, CEO, Muthoot Homefin (India)
“There is a very strong focus on the middle income group and lower income group, this is something that will create the consumption demand in the country and will, in turn, lift the economy.”
Chandrajit Banerjee, Director General, CII
“The various sops for the middle class — like I-T exemption, tax exemption on notional rent on a second self-occupied house and the benefit of rollover of capital gains from investment in one residential house to two — will help existing and potential homebuyers.”
Sanjaya Gupta, MD,PNB Housing
“The govt’s vision for 2030 to place India as a modern, tech-driven, high growth and transparent society, including leading the world in transport through electric vehicles and energy storage devices, further emphasises the role of digital technologies in transforming not only businesses but overall living standards.”
Sanjay Jalona, CEO & MD,L&T Infotech