Vishwanathan Iyer, Professor of Finance Area and Associate Dean (Academics) of TA Pai Management Institute (TAPMI), said that Budget 2020-21 is a bold pro-middle class, pro-corporate and forward-looking Budget.
Vishwanathan Iyer
“The big message is that wealth creators shall be respected. Big and bold moves such as raising the threshold for income tax as well as the abolition of DDT. Simplified GST norms, revisiting rule of origin requirements and also tightening of regulations relating to dumping of goods greatly benefit the MSME sector. Partial divestment of LIC and IDBI proposed should bring more retail participation in the market. The key thing to be kept in mind is that Finance Minister has not allowed fiscal deficit to spiral out of control. This should definitely boost business sentiment,” he said.
Rajiv V Shah, Professor (Finance Area), TAPMI, said the focus on transport infrastructure development is welcome and needs to be pushed forward with even more vigour.
Rajiv V Shah
“This leads to immediate benefits such as employment, and in the long run, also helps to develop the economy through reduced transportation costs and improved connectivity. The proposal to rationalise the tax structure by giving an option to pay tax at reduced rates if deductions are not claimed can be a double-edged sword. On the one hand, it definitely leads to simplification of the return filing activity and saving manpower and energy on verification of claims of deductions. However, it can also lead to a shift in the investing and savings pattern of the taxpayer as the current investments have the added benefit of tax savings built into the returns. This could possibly be replaced by other savings options or even enhanced spending. While this could be beneficial in the short run, it could affect the post-retirement corpus building activity,” he said.