Union Budget Reactions from Industrialists and Experts
Saturday, February 02, 2019 | 04:35 PM
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Mr. Vaibhav Agrawal (VP- Head of Research and ARQ, Angel Broking):
 “The budget has given a significant boost by putting more money in the hands of the middle class tax payers. It has been proposed that Individual tax payer having taxable annual income upto 5 lakhs shall get full tax rebate. In addition, the standard deduction limit has also been increased to  50,000 per year as against 40,000 currently. The overall limit under Section 80C and Section 24 for interest on home loan have been kept constant. However, since the rebate up to 5 lakhs is on taxable income, your actual exempt income can be  9,50,000 assuming that you utilize your Section 80C investments 1,50,000, NPS limit  50,000 and the home loan interest limit  2,00,000 to the fullest. Also the concept of notional rent on second home has been scrapped. TDS exemption limit on bank and post office deposits have been increased from  10,000 to  40,000 per year thereby easing tax administration for small savers. But the biggest change is on the proposed changes in tax administration over the next 2 years wherein all tax returns will be processed in 24 hours and the refunds will be processed simultaneously. It is definitely a significant budget from the income tax perspective.”

Mr. Amarjeet Maurya (AVP- Mid Caps, Angel Broking):
 “The budget has given a big boost to the urban incomes and rural incomes. For example, the increase in the taxable limit from Rs.2.50 lakhs to Rs.5 lakhs will be a boost for urban and semi-urban purchasing power. This is likely to be positive in terms of additional spending for sectors like FMCG, consumer durable goods and for automobiles. The government decision to allocate Rs.75,000 crore to 12 crore farmers for a minimum assured income of Rs.6000 per year. This is likely to give a big boost to rural consumption again with positive implications for sectors like tractors, hybrid seeds, agri inputs, two wheelers, consumer goods etc. There is a positive takeaway for the real estate sector. The abolition of tax on notional rent on second homes will incentivize people to now invest in second homes at a much aggressive rate. That is good for realty companies. Also the budget offers a special rebate to realty developers by allowing them to maintain 2 years inventory without showing notional rent as against 1 year inventory today.”

Ms. Priti Rathi Gupta. (MD & Promoter - Anand Rathi Group and Founder of LXME) :
“The FM did what was the need of the hour by encouraging MSMEs and  Women entrepreneurs in boosting the economy.  The increase in basic exemption limit to INR 5,00,000 will stimulate additional investments and disposable income resulting in more Investment power. I also feel tax breaks for women returning to the workforce will prove to be a push in the right direction. Celebrating women and giving them equal and better opportunities in the upcoming budgets will be a positive big contributor to grow the Indian economy.”  

Mandar Agashe, (Founder & Vice Chairman, Sarvatra Technologies):
“Around 12 crore small and marginal farmer families are likely to benefit from ‘Pradhan Mantri Kisan Samman Nidhi’ program who will be getting Rs. 6,000 per year directly into their bank accounts. This will encourage farmers to open bank accounts who do not have one. Many Kisan Credit Card holder who have not been using their account will activate their debit cards for taking benefits of the program. In addition to this government has announced to extend facility of Kisan Credit Card scheme (KCC) to Animal Husbandry and Fisheries farmers. They will be also benefiting with 2 % interest subsidy for availing loans through KCC and additional 3 % subsidy for timely payment of loans. This means there will be more KCC accounts opening up giving a required boost to digital transactions in rural areas. Kisan Credit Card holders will start using their debit cards for doing transactions at ATMs and micro ATMs along with making payments through PoS machines. Sarvatra Technologies, which provides providing digital solutions to banks and payment companies, is also one of the lead player in issuing Kisan Credit Cards through large number of co-operative banks in India. We will get an opportunity to bring more underbanked rural population on digital payments platform. The company single handedly issued  approximately 1 Crore Debit Cards to KCC (Kisan Credit Card) customers, thereby achieving 1/3rd of the 3 Crore national target set by the PM.”  

Dr. Keshab Panda, (L&T Technology Services, CEO & MD) : 
“We welcome the provisions announced in the interim budget 2019. The government’s focus on clean and green India enabled by a growing market for electric vehicles will provide much-needed impetus to the rapidly maturing ER&D sector leading to more disruption and jobs. 

The vision to position India as the global renewable energy hub will enable enterprises and smart city developers to build energy efficient infrastructure. ER&D will also help provide affordability in healthcare and medical devices using promising new technologies such as 3D printing. We believe that engineering will be the cornerstone for India’s rise to become a $5 trillion economy in the next 5 years”
Mr. Sanjay Dutt, (MD & CEO, Tata Realty Limited):
“The Interim Budget 2019 has remained focused on the nation’s economic growth and brings a positive sentiment in the real-estate industry.The government’s initiative to reduce the GST burden on the taxpayer coupled with tax rebates on incomes up to INR 5 lakh will help improve the purchasing power of individuals. Moreover, the decision to ensure a competent system to impose and collect stamp duties at one place helps in streamlining and creating an efficient structure within the industry. With no notional rent levied on second self-occupied homes and the capital gains up to Rs. 2 crores which can be used for buying upto 2 houses, provide much needed impetus to the demand for homes. The deductions announced under Section 80IBA have been extended to projects which will be registered by March 2020-this again paves the way for new launches. India today is now the second largest startup hub in the world, a promising note for the commercial real estate players, however extending SEZ benefits till 2020 could have added further impetus in this regard. The focus on next-generation infrastructure to provide Ease of Living shows the modernization that the country has well adapted to and thereby will boost the real estate sector too. This year’s budget has laid the foundation for the performance of real estate sector in terms of boosting the economic growth and also enhancing the infrastructural development.”

Mr. Shrinivas Rao, (CEO-APAC, Vestian) : 
 “Proposed reforms such as exemptions on income tax and direct financial benefits along with the PM Kisan Nidhi Yojana come as a relief for the middle-class and farmers respectively. Although the proposition does seem like a roadmap for rural and urban economic development, the upcoming July budget will bring further clarity.”
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