The Budget has proposed an amendment to the Income-tax Act retrospectively from assessment year 2005-06, to stop claiming of cess and surcharge as business expenditure during tax calculations.
Experts claim that this will have a bearing on Indian arms of companies based in these countries and were engaged in litgation with Indian tax authorities.
"It is a continuing scheme and a review of the rates is on" said an official, adding that there is proposal to lower the incentive rates. Commerce secretary BVR Subrahmanyam said that the scheme has been approved by the Cabinet and will be notified soon.
India's commitment to addressing climate change is reinforced in this Budget, with various initiatives around Clean Mobility.
Most Union Budgets necessarily have a short-term outlook and a few outline the government's thinking about the medium term. This Budget has been unique in taking the long view - looking at where the country needs to be in the next couple of decades. Finance minister's speech outlines the vision - a physically and digitally networked green economy -- while the allocations focus on the immediate tasks to be accomplished.
The existing SEZ Act was enacted in 2006 with an aim to create export hubs and boost manufacturing in the country. However, these zones started losing their sheen after the imposition of a minimum alternate tax and the introduction of a sunset clause for the removal of tax incentives.
India's unemployment rate witnessed a sharp decline to 6.57 per cent in January, the lowest since March 2021, as the country gradually recovers with easing of restrictions following a decline in Omicron cases, according to CMIE.
Government's capital spending and the ambitious PM Gati Shakti programme will build the world class infrastructure that is an essential requirement to become an advanced economy. The Prime Minister's vision on this is indeed laudable. Another welcome move is the announcement of a direct payment of ₹2.37 lakh crore to wheat and paddy farmers under the MSP scheme.