Budget proposals to create strong base for growth, says ICSI

The Union Budget is reformist and aims to create a strong base for economic growth and ensure fiscal discipline, ICSI President Mamta Binani has said.

The ICSI (Institute of Company Secretaries of India) chief also said providing enabling environment and reduction of tax rates for startups, reduction of tax litigation and development of infrastructure, among others, are commendable.

"The Budget is progressive and is setting fiscal discipline," she said in a release.

Binani also said financial reforms, including the proposal for setting up of Financial Data Management Centre and to develop new derivative products for commodities market, would go a long way in strengthening fundamentals of financial market.

About the Budget proposals, ICAI (Institute of Chartered Accountants of India) President M Devaraja Reddy said formulation of a new Dispute Resolution Scheme (DRS), keeping in mind the large number of cases pending before Commissioner (Appeals), is a welcome measure proposing penalty waivers based on disputed tax limits.

"Reducing the stringency of penal provisions will go a long way in reducing tax litigation and improving compliance," he said in another release.

Rajan noted the proposal for placing a monetary cap of Rs 1,50,000 on employer's contribution to recognised provident fund would once again be detrimental to the interest of salaried class.

"Introducing a graded penalty scheme in the place of a broad range of 100 to 300 per cent of tax sought to be evaded would definitely serve the intended objective of reducing the discretionary power of the tax officers, and bring in an element of certainty," he said.
Source : moneycontrol