Andhra Pradesh might have got a raw deal in the Union Budget, but people should look at it in a positive way, as the Centre was trying to kick-start economic growth through various measures, experts observed at a budget analysis here on Monday.
“The Centre hopes that the growth in the next financial year would rise to 8- 8.5 per cent, and this is a good sign. If this is achieved, there will be lot of opportunities and people should try to spot and cash them,” said V. Kaliprasad, managing partner of Ernst & Young while addressing the Andhra Chamber and Ernst & Young Budget Analysis for 2015-16.
Andhra Pradesh and Telangana got a raw deal in the budget, and people’s expectations were dashed. AP is vested with entrepreneurship talent, and the budget should not be a deterrent for positive growth in the State. Incentives should not be the only criteria for growth, said Mr. Kaliprasad.
Ernst & Young Director Pankaj Jain, who gave a presentation on Direct Taxes, said there were no major changes in taxes.
There are few benefits like pension scheme increased from Rs.1 lakh to Rs.1.5 lakh, reduction of withholding tax for non-residents to 10 per cent, abolition of wealth tax, investment allowance for setting up new undertakings in notified backward districts of AP and Telangana, though the notification is yet to be issued, he explained.
“There are reports that the government is coming up with a law on black money with 10 years imprisonment and 300 per cent penalty for offenders and a benami transaction prohibition act. It will be a challenge for many people as the government made it mandatory that all real estate transactions more than Rs.20,000 should be done through cheques and not with cash,” he added. Andhra Chambers of Commerce and Industry Federation president-elect Muthavarapu Murali Krishna said the objective behind organising the session was to analyse the budget from various industries perspective and enlighten members about direct and indirect taxes.
