Budget 2016 carries with it plenty of hype and expectations despite the slowing global economy and a gloomy picture presented for the rest of the world. In that context, India has been a beacon of hope delivering 7.6% growth in the past year with projections for similar levels in the coming year as well. A lot therefore rode on the budget pronouncements of the government. Will they be able to For what it is worth, the government has carried forward on the path towards reforms via this budget by proposing relaxation of foreign direct investment norms in certain sectors while sticking to the target fiscal deficit figure of 3.5% .
The government has followed up on its promise of reducing corporate tax rates, albeit only for limited subset. They have also actively reduced various deductions or have announced sunset clauses for other deductions to simplify the tax structure in the long run.
Start-ups have gained, as announced in the startupIndia plan, by way of tax incentives. Place of Effective Management provisions have also been deferred for a year. At the same time the government has reaffirmed its commitment to general Anti avoidance Rules (GAAR)
We hope you find the comprehensive analysis of the budgetary provisions useful. Should you have any specific queries regarding the budget feel free to reach out to us. Our team will be happy to help you.