Stating that FM Arun Jaitley should look at reducing tax rate in Budget 2017, Keki Mistry, Vice Chairman and CEO, HDFC on Friday told CNBC TV 18 that housing sector may get a lot of focus in the upcoming Budget. Some sources also told the business news channel that Budget 2017 will be taxpayer friendly and it may focus on sectors like agriculture, MSME and housing. “It may also focus on welfare and skilling of the poor and may reflect Modi government’s effort to soothe cash crunch pain.” The Finance Ministry is also reviewing limit for tax rebate on home loans, the sources added.
Meanwhile, FICCI (Federation of Indian Chambers of Commerce and Industry) has urged Finance Minister Arun Jaitley to revise the current income tax slabs and bring them at par with international standards. “Currently, the peak tax rate of 30% is made applicable over an income of Rs 10 lakhs for individual taxpayers. However, the income level on which peak rate is applied in other countries is significantly higher,” says FICCI. “Hence, there is a need for further raising the income level on which the peak tax rate would trigger, to make the same compatible with the international standards,” it recommends in its pre-Budget 2017 memorandum. Additionally, it wants that the Union Budget 2017-2018 should withdraw the levy of surcharge on individuals having income above Rs 1 crore.
Recently, economists and experts at NITI Aayog, discussed steps that could be taken in the upcoming Budget 2017.
They discussed issues like job creation, agriculture and skill development. They also chalked out the roadmap for economic planning in India, to formulate India’s Vision. According to sources, 4-5 sectoral groups have been set up to discuss new initiatives and budget proposals.