Federation of Telangana Chambers of Commerce and Industry has said that the Union Budget for 2020-21 is balanced overall with allocation for investment on infrastructure and incentivising manufacturing sector.
President of the FTCCI Karunendra S Jasti, speaking to media after the live streaming of Union Budget, here on Saturday said it was important in an economy on the downturn, to invest on infrastructure, job creation and wealth creation. However, one should wait and see how the allocations on investment would fructify. Government should focus on infrastructure rather than subsidies and concessions as in the long-term, only infrastructure development would revive the economy.
The Budget addressed the needs of all sections of society — farmers, women SHG groups, salaried people, individual tax payers, MSMEs and companies. The Finance Minister has considered majority of the concerns expressed by industry and has given major reliefs like — increasing the turnover limit from ₹ 1 crore to ₹5 crore for compulsory audit, bringing smaller NBFCs under SARFAESI Act and reducing the loan size from ₹ 1 crore to ₹ 50 lakh for applicability of SARFAESI Act, extension of debt restructuring facility for MSMEs till March 2021, extension of tax holiday for developers of affordable housing by one year.
Spending power
He however said that the net effect of the changes in the income tax slabs and rate cuts would be known only after examining the exemptions and deductions removed/retained. The revenue that government lost through cut in corporate taxes would come to hands of people.
Chairman of the Direct Tax Committee of FTCCI Premchand Kankariya said that the new tax slabs were for simplification if one would forego deductions. Abolition of Dividend Distribution Tax, a long pending request, was conceded as it amounted to double taxation and now it would be taxable only at the hands of recipient. Another key feature was faceless assessment and appeals that would be good for ease of doing business. The proposed charter for tax payers would be part of statute and mandatory and would enable tax payers to get relief.
Chairman of the GST & Customs Committee M. Jayadev said measures for GST simplification would be helpful and electronic invoicing coupled with Aadhar based verification to be made mandatory would help prevent invoice frauds but one should see how small shopkeepers who do not have computers would do electronic invoicing.
Asked if the Budget has anything to help MSMEs in the State, FTCCI members said nothing much for the States and they would have to fend for themselves. There was nothing to expect from Centre and it was disappointing that way.
Advisor to GST and Customs Committee of the FTCCI S.Thirumalai said Telangana would not get any benefit for Mission Bhagiratha.
