Bharat Dhawan
NEW DELHI: The budget has brought good news for homebuyers with its proposal to reduce hardships faced in realty deals, said Bharat Dhawan – Partner, Mazars.
“As per proposal, there would be no adjustment in case circle rate does not exceed 5 pc of sale consideration,” he said.
“All small cap companies would be happy on the tax front with this Budget due to cut in corporate tax rate to 25% with turnover of up to Rs.250 crore. However, the salaried class would not be thrilled with the token Rs 40,000 standard deduction, which replaces transport allowance and medical reimbursement. Further, senior citizens would feel incentivized to get Rs50,000 per annum exemption for medical insurance under Sec 80D from existing Rs. 30,000 per annum,” added Dhawan.
“Market may take a deep dive due to proposed long term capital gain tax over 1 lakh in a year @ 10% without indexing,” he said.
“From indirect tax perspective, considering the new law in operation for the past year, the budget has not proposed major changes in goods & Service Tax law. However, various changes have been proposed in custom duty levy which mainly leads to increase in import duty incidence. Further, cess on custom duty is replaced by Social Welfare Surcharge of 10%, the mechanics of calculation is similar to that of cess levied at present,”Dhawan said.
Finally, it has been officially declared that Government does not consider crypto-currency as legal and will take all measures against its illegal use.