Budget Proposals would Increase Purchasing Power of Small Taxpayers: ICAI

ICAI Membership Budget - Tax Scan

The Institute of Chartered Accountants of India ( ICAI ) has opined that the budget proposals made by the Finance Minister Piyush Goyal on Friday would increase the purchasing power of the taxpayers as it helps to put more money in their pockets.

The Interim Finance Minister, Shri Piyush Goyal, being a Chartered Accountant with deep insight of the state of affairs of the Indian economy, while presenting his maiden Union Budget 2019-20, emphasized that the country witnessed its best phase of macro-economic stability during the last four years, with a high annual average GDP growth since 1991, the year when significant economic reforms were first initiated, the ICAI said in a statement.

He iterated that generation of high growth rate, curtailing inflation and restoring fiscal balance, has taken India to the 6th position in the world economy. This period also witnessed a rapid liberalization of the FDI policy, a wave of next-generation structural reforms, including the path-breaking implementation of Goods and Services Tax (GST).

CA. Naveen N. D. Gupta, President, ICAI  last day said “Chartered Accountant Finance Minister presents maiden Union Budget with the ten-dimensional vision for India’s growth & nation building”

The Interim Finance Minister detailed the tax reforms on the direct taxes and GST front and the benefits of the same to the citizens of India. He highlighted that tax collection, as well as the tax base, have shown a significant increase and India has made considerable progress towards achieving a moderate taxation-high compliance regime. He acknowledged the valuable contribution of taxpayers to nation building and in particular, for providing a better life to the poor and marginalized sections of society. In order to pass on the benefit of tax reforms to such taxpayers without any delay, tax proposals have been introduced in this interim budget itself favoring small taxpayers especially middle-class salary earners, pensioners, and senior citizens.

according to the ICAI press release, the beneficial tax proposals include a complete tax rebate for individual taxpayers having total income up to RS. 5 lakhs, increase in standard deduction from Rs.40,000 to Rs. 50,000, an extension of the benefit of Nil annual value for self-occupation to two residential houses and increase in TDS threshold on interest earned on bank/post office deposits from Rs.10,000 to Rs.40,000 and on rent from Rs.1,80,000 to Rs.2,40,000. Further, investment in two residential houses would be permissible for claiming capital gains exemption under section 54.

Overall, the budget proposals on the personal taxation front would put more money in the pockets of small taxpayers and increase their purchasing power. In short, it is a progressive budget from a Chartered Accountant FM, it said.