ClearTax was invited to the CNBC Awaaz 11 years celebration which was held at The Ashoka, New Delhi. At the event, Finance Minister, Mr Arun Jaitley, Minister of State for Finance, Mr Jayant Sinha, Minister of Shipping Road Transport and Highways, Mr. Nitin Gadkari, Minister of State for Petroleum and Natural Gas, Mr. Dharmendra Pradhan, and other dignitaries from the corporate world were invited.
While government’s plan for ‘Start up India stand up India’ was discussed, it was interesting to hear what our Finance Minister had to say about the status of the economy and way forward for Direct taxes. Here are the significant take aways –
- According to the finance minister given the state of world economies, China’s worries and the devaluing rupee, and pressure on currencies around the world; it is commendable that India is able to report a 7% + GDP growth.
- He also mentioned that in the upcoming budget, exemptions allowed to corporates which reduce their effective tax rates will have to go away. This will be done in a phased manner over the next 3-4 years. The government’s intent shall be to bring down the tax rate to 25% for corporates and do away with unnecessary exemptions.
- The finance minister spilled no beans on what his plans for individual tax payers is (the 2016 budget will be announced on 29th February). However, he mentioned the government wants small investors to save & invest more. Is he going to announce some new ways to invest & save tax in the budget? may be yes.
- Mr Jayant Sinha was asked whether higher deductions on home loan interest is planned in the Budget, but he appeared totally non-committal on this matter.
Through our blog we hope to bring you what’s in store for the 2016 Budget 🙂