Whether Budget to be presented by NDA government will be vote on account or something more will only be known on February 1 when Finance Minister Arun Jaitley presents Budget 2019.
Enough hints have been dropped to indicate that Budget will not be a mere vote on account.However, a very limited scope is available to government to make major changes on tax front.
With 2019 being election year, there is expectation from common man that some relief be granted in tax rates and deductions, and government may oblige common man by raising slab rates by about Rs.
50,000.
This will have a very positive sentimental impact without sacrificing large revenue.On corporate tax front, very little may be done by government.
Not much is expected in terms of reliefs as finances of government are stretched.Major changes are also not expected in Goods and Services Tax (GST) as all amendments have to be approved first by GST Council.
The GST Council has already made substantial changes in last two meetings.
Besides, for changes expected by real estate sector, government has recently set up a committee.However, this Budget will give government an opportunity to make grand announcements for things to come in future if a BJP government is elected.
Notable announcements can be expected on availability of credit to rural, MSME (micro, small and medium enterprises), health and farming sectors.(Ashok Shah is Partner at N.A.
Shah Associates LLP)Disclaimer: The opinions expressed within this article are personal opinions of author.
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