POST BUDGET REACTIONS
SPOKESPERSON, MR ARCHIT GUPTA, CEO and Founder, ClearTax.in
Tax relief for low income earners who live on rent but do not get HRA -can reduce Rs 36,000 from their gross taxable income. This deduction was stuck in time and will be helpful for taxpayers in non-HRA category.
Tax relief in section 87A to those earning below Rs 5lakhs. This is only allowed to RESIDENT individual. Where Total Income Less Deductions (under Section 80) is equal to or less than Rs 5,00,000
Seems there will be a possible amendment in Section 80EE for first time home buyers – First home buyers to get addl deduction of Rs 50,000 if home loan < Rs 35lakhs and cost of house < Rs 50lakhs.
The Finance Minister has intended to give this benefit in Section 80EE to the lower income group who are purchasing their first house. Will be the much needed thrust to the housing sector in tier-2 and tier-3 cities.
Section 44AD amendments – Significant development for small enterprises and professionals such as lawyers and doctors, interior designers etc who can now relieve themselves of cumbersome account keeping and audit requirements by availing this scheme. This inclusion of professionals bound to see immense popularity. And will make the simple 3-4 page ITR-4S popular.
SPOKESPERSON,ANURAG AVULA, FOUNDER and CEO,SHOPMATIC
It’s great to see reforms being proposed in favour of entrepreneurs, not only in urban India but in all parts of the country. The move for forming the National SC/ ST Hub with the Ministry of Micros SME to support SC/ ST entrepreneurs, is heartening to see.
Its also great to see that the Special Patent Regime proposed to power innovation and research has been initiated, which further fosters the country’s creative spirit.
It takes a lot of time and effort into running and building a successful business. What is great to note is that a bill is being introduced for ease of doing business and to enable registration of companies in a day, will certainly ease the process.In totality we are quite pleased with the startup and entrepreneurial announcements, specifically the Special Patent Regime proposed to power innovation and research that we believe will nurture and mentor the next wave of tech stars that will drive a successful economy.
SPOKESPERSON, VINOD MURALI, MANAGING DIRECTOR, INNOVEN CAPITAL
Given the enormous debt burden on Indian corporates, measures which help in improving overall credit health of the economy are welcome and the Finance Minister’s move to hold the fiscal deficit targets at prior levels despite pressure to allow for growth, should be commended. This was not a budget with high expectation of drastic reform and many of the announcements have been tactical or to improve efficiencies. There is more sensitivity to entrepreneurship which is a good start but this area needs more attention in the years to come.
SPOKESPERSON,MR SREEVALSAN MENON,FOUNDER & CEO, MEDIKOE
“Overall very neutral for Healthcare sector, focused primarily on Insurance, however govt should have given thrust around sectors like Pharma, R&D, Rural healthcare centers,Affordable Healthcare for larger population,service tax exemption on healthcare,” this initiative must have stimulated the healthcare sectors, which must have lead to Access and affordable healthcare to the entire population of India.”
SPOKESPERSON,PRADEEP SINGH,CEO and Co Founder, Vidyanext
“On education, the government needs to focus more on quality not just quantity. The latest Annual Status of Education Report (ASER 2014) shows that while school enrolment is high (96.7%), learning outcomes are alarmingly low. One out of two students in grade 5 cannot read text of grade 2 level. 55.9% of class 8 students cannot do simple division.
While the budget has welcome initiatives to increase educational reach across the spectrum, what is missing is an action plan to simultaneously improve learning outcomes. One solution is to help teachers become more effective by giving them easy-to-use technology tools that help students learn better. This will serve the twin goals of improving learning outcomes while simultaneously ensuring digital literacy for the new generation.
SPOKESPERSON, VIKRAM OSWAL,FOUNDER , Woozoe
“The 100% FDI in marketing of food products produced and manufactured in India sounds promising. I was expecting the decrease in service tax cess as 14.5% in the previous year’s budget seemed unacceptable by the public, which made a lot of services expensive. When it comes to Start-ups, in my opinion, exemption of tax from these companies for 3 years will provide a good boost to many start-ups as when a company begins to grow it needs a huge amount of financial support. With the tax exemption, a startup can look at focusing more on its growth without worrying about taxation”