Budget 2019-20: As the new finance minister lays out maiden Union budget of re – elected government, we expect a balancing act on 5 July 2019 – giving certain relaxations to spur demand and attractiveness of India as a tax jurisdiction.
Union Budget 2019 India: The re-elected BJP led NDA Government is gearing up to present its first Union Budget 2019 of this term, and a slew of big ticket reforms are expected to improve the health of economy by attracting investments and creating employment opportunities. Various stakeholders such as corporate houses, businessmen, salaried professionals etc. expect tax to be one of the key drivers in this endeavour of the government.
While building on the foundation laid by its policies to create transparency and accountability for taxpayers in its first term, the government may look to further increase compliance from taxpayers and align India’s tax framework to global standards in terms of tax rates in the Union Budget. Accordingly, plans to reduce the current corporate tax rate may be on the cards. In the 2015-16 budget, the government had announced that the corporate tax rate would be gradually lowered to 25 per cent from 30 per cent over the next four years and exemptions available to companies would be phased out. In the subsequent years, the tax rate was reduced to 25 per cent for companies with a turnover of up to INR 250 crore. We expect even broader category of companies to be covered under the lower rate.
Source: Financial Express
