Ratlam: Experts here said that though Union Budget 2021 will boost development, it will lead to inflation due to higher rate of deficit. Union Finance Minister Nirmala Sitharaman almost kept status quo on income tax while she should have eased compliance and rationalisation of the slab rates, opined experts.
Chartered accountant Navin Pokharna said that expectations with respect to simplification and rationalisation of Income tax structure came to a naught as Finance Minister maintained status quo. He lauded the setting up of Bad Loan Bank as it will allow banks to focus on their core activities.
Tax practitioner Deepak Purohit said that small tax payers are worst affected due to Covid and at least relief should have been given to the tax payers in the income bracket of Rs.5-8 lakh. He said that those who rely only on pension and income from interest should have been exempted from Income tax instead of proposed relief for pensioners of the age of over 75 years. He said there is nothing in Budget for to cheer Income Tax payees. He said that GST provisions should be made more rationale.
CA Vijay Somani said that the proposed amendments of higher TDS on PAN card holders who do not file returns will boost tax filing. He said that lack of relief to tax payers with income over 5 lakh is a big disappointed. He said amendment that revised Income tax return will be allowed to be filed within three months of filing of original return will increase discontentment. Infrastructure and transport sectors will get big boost.
Kar Salahkar Parishad secretary CA Anchal Moonat said that Budget aims to prop up the economy and boost spending. There was no need of increasing FDI limit in insurance sector from 49% to 74% as it will harm insurance companies of our country. He welcomed doing away with GST audit. He said that prefilled information for income tax returns for capital gain, dividend and interest form bank to PAN holders will increase the number of income tax payers.
Tax Practitioner Pushpraj Chhajlani said proposed increase in limit of audit exemption from turnover of Rs.5 crore to 10 crore in case of 95% transactions being digitised will not serve its purpose as the 95% digitised condition should instead have been brought down to 75%. He said that under Income Tax Act, home loan interest limit should have been raised and the provisions of late fee and interest charges should have been given practical look.
CA Pramod Nahar said that budget is growth oriented overall but direct tax payers are unhappy due to status quo maintained by Finance Minister and lack of rationalisation in provisions . He said that though there will be no direct effect of various types of cess which are now being imposed but ultimately the burden will pass on to the consumer. He said talk of one nation one rate should have been applied to the price of Petrol and diesel it. He said that recently he purchased Petrol at Rs.83.35 per litre in Gujarat while in MP he has to pay Rs.93.65 per litre.
CA Palak Kakani Maheshwari termed Union budget growth oriented which will support achieving target of five trillion economy by 2025. She said that proposed increase in the compliance limit of educational institutions from Rs.1 crore to Rs.5 crore will boost the education sector. She also welcomed reducing the time period of reopening of assessment from six years to three years which will increase faith of the tax payers.