Mukesh Butani,
National Head (global tax advisory solutions), Ernst & Young
The removal of surcharge and increased standard deduction will certainly please most salaried taxpayers, though those in the high tax bracket seemed to have been left out.
Most of the Kelkar panel recommendations have been ignored in personal taxation with the rebates and slab rate structure remaining intact. The salaried class is expected to have more disposable income in its kitty. For corporates, the retention of exemptions and deductions in the face of the Kelkar panel recommendations would come as reprieve.
In a tribute to the Kelkar panel suggestions, the Budget proposes a number of changes in tax administration procedures, like outsourcing of non-core activities, computer-based selection for return scrutiny, automatic credit of refunds and electronic filings to increase efficiency and engender a tax-payer friendly atmosphere.
One needs to wait and see what the outcome of such administrative changes will be.
In a move to bolster the stock market and revive the small investor
