GST, the most awaited reform in Budget: survey

200 senior professionals participated in the KPMG survey

Updated - November 17, 2021 04:46 am IST

Published - February 26, 2015 11:08 pm IST - MUMBAI:

In the real estate sector, 60 per cent of respondents felt the government will introduce or rationalise tax incentives to achieve the vision of 'housing for all by 2022, says Survey. File photo: M. Srinath

In the real estate sector, 60 per cent of respondents felt the government will introduce or rationalise tax incentives to achieve the vision of 'housing for all by 2022, says Survey. File photo: M. Srinath

The Constitutional Amendment Bill on Goods and Services Tax (GST) is the most awaited reform in the Budget 2015 as India Inc feels that its introduction will bring India on a par with developed economies.

A survey, conducted by KPMG India with over 200 senior professionals participating between January and early February, shows that 75 per cent of the respondents responded positively to GST introduction along with their expectation that the Budget will lay the road map for implementing the same.

India Inc is awaiting the Union Budget to be presented on February 28 particularly due to the current buoyant economic scenario and the positive investor sentiment prevailing. "The pending tax and regulatory policy reforms, if undertaken, have the potential to increase investor confidence and put India on the growth pedestal as promised by the government,’’ KPMG India Head (Taxation) Girish Vanwari told this correspondent.

About 83 per cent of the respondents expect the government to introduce various policy reforms to promote the 'Make in India’ campaign while around half the respondents expect the Minimum Alternate Tax (MAT) and dividend distribution tax (DDT) to be reduced.

For foreign investors, 45-50 per cent of the respondents feel there will be clarificatory amendments in applicability of tax provisions on indirect transfer of capital assets located in India to cover only prospective transactions. Further, 45 per cent feel the General Anti Avoidance Rules (GAAR) introduced in Budget 2012-13 to cover impermissible avoidance arrangement will be made applicable in a phased manner.

On the personal taxation front, 53 per cent of the respondents expect an increase in the maximum limit of income not to be considered taxable and 70 per cent expected an increase in the limit for deductions allowed under Section 80C. This will increase the amount of disposable income in the hands of individuals.

In the real estate sector, 60 per cent of respondents felt the government will introduce or rationalise tax incentives to achieve the vision of 'housing for all by 2022’. Also, to make the recently introduced real estate investment trusts (REITs) more attractive for sponsors and investors, 40 per cent of the respondents felt that the budget would suitably amend the tax regime.

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