Employees not enthused by sop

Tax Experts say some relief to Income Tax Payers

Vijayawada: Union Budget presented by Finance Minister Arun Jaitley on Wednesday in Parliament evoked mixed response in the city. Income tax payers particularly employees have disappointed with the budget.

Vijayawada Chamber of Commerce and Industry, too, expressed unhappiness over the budget. Government employees and private employees, who pay income tax, have hoped that the tax exemption limit will be increased to Rs 4 to Rs 5 lakhs in the budget. Unfortunately, the hopes of employees were dashed on Wednesday. The exemption increased from Rs 2.50 lakh to Rs 3 lakh only. Income tax rate for individuals, firms between Rs 2.50 lakh and Rs 5 lakh is 10 per per cent now and it will be reduced to five per cent.

Traders may get some tax relief in this budget. Business units with turnover up to Rs 2 crore are liable to declare income of 8 per cent as deemed income till now and it is reduced to only six per cent. The tax payers can get some relief with decrease of two per cent. Chartered Accountant A S R S Siva Prasad felt the Union Budget has given some tax relief to common people particularly middle class and above middle class people and small traders, whose turnover is less than Rs 2 crore per year.

He said the farmers in Amaravati will be benefited with the Union Budget as tax relief was given to the farmers, who gave their lands to the government for the construction of the capital. In real estate sector, the consumers purchasing flats get some consolation in this budget. The buyers have to pay stamp duty for only carpet area instead of total area.

In and around Vijayawada, hundreds of buyers purchase flats every year. These buyers can get some relief with the new policy on real estate. Meanwhile, Vijayawada Chamber of Commerce and Industry expressed unhappiness over the budget. Chamber president Vakkalagadda Bhaskara Rao said the priority was not given for agriculture and industry in the annual budget. He felt the income tax slab limit should have increased to Rs 5 lakh in the budget and it would have brought many people under the tax net.

He said the government could have reduced interest rates on housing loans and concessions for cashless transactions.

K Sagar ,who runs a small scale industry at Auto Nagar, was disappointed with the budget. He said the government had not announced sops as part of the Start Up or Make in India schemes. He said the government could have given more incentives to encourage industries.