Budget 2020

‘Proposal to rationalise I-T structure can be a double-edged sword’

Mangaluru | Updated on February 02, 2020 Published on February 02, 2020

The Budget proposal to rationalise the tax structure by giving the tax-payer the option to pay tax at reduced rates if deductions are not claimed, can be a double-edged sword, a professor from the Manipal-based business school, TA Pai Management Institute (TAPMI), has said.

Rajiv V. Shah, Professor (Finance Area) of TAPMI, said the proposal would simplify the returns filing activity and save manpower and energy on verification of claims of deductions.

However, it can also lead to a shift in the investing and saving pattern of the taxpayer, as current investments have the added benefit of tax savings built into the returns. This could possibly be replaced by other savings options, or even enhanced spending. While this could be beneficial in the short run, it could affect post-retirement corpus building activity, he said.

The focus on transport infrastructure development is welcome and needs to be pushed forward with vigour. This would lead to immediate benefits such as employment, and in the long run help develop the economy through reduced transportation costs and improved connectivity, he said.

Vishwanathan Iyer, Associate Dean (Academics) of TAPMI, said Budget 2020-21 is a bold, pro-middle class, pro-corporate and forward-looking Budget. The big message is that wealth creators will be respected. The Budget has taken bold moves such as raising the threshold for income tax, as well as the abolition of DDT.

Simplified GST norms, revisiting the Rule of Origin requirements and tightening of regulations relating to dumping of goods have benefited the MSME sector, he said.

The proposed partial divestment of LIC and IDBI should bring more retail participation in the market. The key thing to be kept in mind is that the Finance Minister has not allowed the fiscal deficit to spiral out of control. This should definitely boost business sentiment, he added.

Published on February 02, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.