A well-balanced Budget: FTCCI

Hyderabad: The Union Budget for 2020-21 is balanced and addressed the needs of all sections of the society – farmers, women SHG groups, salaried people, individual taxpayers, MSMEs and companies, said the Federation of Telangana Chambers of Commerce and Industry (FTCCI).

The Finance Minister has considered majority of the concerns expressed by industry and has given major reliefs like – increasing the turnover limit from 1 crore to 5 crore for compulsory audit, abolition of Dividend Distribution Tax for companies, bringing smaller NBFCs under SARFAESI Act and reducing the loan size from Rs 1 crore to Rs 50 lakh for applicability of SARFAESI Act.

Extension of debt restructuring facility for MSMEs till March 2021, extension of tax holiday for developers of affordable housing by one year are the add-on's said the Chamber.

The theme of the Budget was based on three aspects- Aspirational India, Economic Development and Caring Society and is aimed at giving equal importance to welfare, well-being and development.

Government has more or less succeeded in addressing all three – by giving enough impetus to agriculture, Irrigation and rural development by addressing the improvement in health and education sector and aiming at entrepreneurship and skill development and incentivising the domestic manufacturing sector. The expenditure on infrastructure projects is essential to revive the economy facing recessionary trends.

The changes in personal income tax slabs and rate cuts are welcome step and help improve the purchasing power in turn leading to increase in consumption demand.

But the net effect of the reductions can be known only after examining the exemptions and deductions removed/ retained.