Tax experts give thumbs up Arun Jaitley’s Budget. Here’s what their analysis says

The budget seems to have given more thrust towards increasing the tax compliance by broadening the tax base rather than raising tax rates, which brings fresh breeze of air to the budget process. The budget estimates projects a revenue growth of 8.8% in indirect tax revenue as opposed to 15.3% growth in direct tax revenue without any major increase in the tax rates. That shows the confidence of the government to enforce stricter compliance post demonetisation and GST implementation.

The additional 10% surcharge has been introduced on income between Rs 50 lakh and Rs 1 crore is a dampener for high networth individuals. MSME with turnover upto Rs 50 crores will benefit from lower tax rate of 25% and there are some concessions to boost the real estate sector. The thrust of the budget is to enhance the tax base and move towards digitization through several amendments in the act. In global macroeconomic backdrop, the calibration in the Indian economy post demonetisation and much awaited GST which is now on anvil, Budget 2017 is stable fine balancing act, with fiscal prudence, directional spending and no surprises on the taxation front which should lead the country to a sustainable growth path.

The budget estimates 8.8% growth in indirect tax revenues as opposed to 15.3% growth in direct tax revenues, prima facie without imposing or increasing rate of taxes. This means that the focus is on increased compliance by broadening the tax base rather than raise the tax rates.
Overall, the Budget proposals seems to be in the right direction and efficient implementation of such proposals, would be the key to accelerate growth and improve Tax compliance in the country