Visakhapatnam: Union Budget 2019 has come as a huge relief to salaried middle class and the farmers. However, there is no change in tax slabs, hike in limits of 80C and interest charged on home loan. But it has provided tax rebate up to the income of Rs 5 lakh.
AP Electricity Employees Union general secretary Ganapathi V.S.R.K. regretted that the income tax slabs were fixed in the same old pattern, which does not yield the benefit to the individual assesses with the existing price inflation.
He said that he had anticipated the taxable ceiling limit to be at Rs 8 lakh since the Government of India itself had said that all those who had an annual income of less than Rs 8 lakh would come under the category of economically backward classes (EBC) and eligible for 10 per cent reservation.
“If the tax ceiling limit is not increased up to Rs 8 lakh, it depicts that the government is collecting tax from the EBC people and thus its magnanimous object may not be fulfilled. Therefore, the Centre may review the income tax ceiling limit,” he said.
AP Chambers of Commerce and Industry Federation welcomed the exemption for Income Tax under Section 87A. This could put more money in the hands of the middle class and aid the consumer and services industry at large, a spokesperson of the organisation said.
The pro-middle-class budget has given priority to taxation reforms, women empowerment and workers in unorganised sector. “Contributory pension for labourers in demonetisation-hit unorganised sector is a much needed relief,” said G. Sambasiva Rao, the Chamber president.
He added, “While schemes like 59-minute portal for credit of up to '1 crore and 2 per cent interest subsidy to MSME units registered under GST, it shows the government’s good intent in addressing sectors’ concerns. This will enable the entrepreneurs to improve their business.”
Another step in the right direction is the raising of the threshold for tax deducted at source (TDS) on interest received on bank deposits from '10,000 to '40,000 and TDS on rent from '1.8 lakh to '2.4 lakh. This is indeed a good measure, and will bring big relief to pensioners and senior citizens, said Mr Rao.
The news of banks coming out of Reserve Bank's Prompt Corrective Action this fiscal, following the expected modification of guidelines will lead to improvement in the bottom line of the public sector banks which will be a big boost to the lending of credit.
Moreover, the tax on deemed rent from second vacant house payable by house owners was abolished. This comes as huge relief for home owners and it may encourage more people to invest in property.
Real estate body CREDAI Vizag chairman G.V.V.S. Narayana said the sector is pleased that the exemption on profits for developers of affordable housing projects has been extended by one year, covering projects approved up to March 2020.
He is hopeful that these supportive measures would further boost the residential real estate sector in the State. On the other hand, he also sought more tax rebates for the first time homebuyer and removal of certain indirect taxes on the realty players.
