Published On : Fri, Jul 5th, 2019

Balanced budget with thrust on all vital sectors: ICAI

Institute of Chartered Accountants of India Nagpur Branch has organized program “Immediate Reaction on Union Budget-2019”, wherein expert Chartered Accountants from the city expressed their reactions and shared their reading between the lines on the said budget.

While expressing his views on the direct taxes proposals, CA. Kapil Bahri said that the Government has realized the precarious condition of our Economy and to accumulate funds for schemes it has resorted to sell stakes in PSU’s as well as going for PPP Model to create avenues. He discussed the provisions for Direct tax in detail while specially mentioning about higher surcharges @ of 3% / 7% on Individuals earning income above Rs. 2 Crore. A TDS by Banks @2% on cash withdrawals above Rs. 1 Crore from Bank Account during the year highlights the Government intentions to press for digital payments. Specific TDS provisions u/s 94IA, 94LA and newly inserted sections 94M and 94N were also discussed. About Government initiative for E-assessment i.e. faceless enquiry, CA Bahiri commented that how it would be implemented would be challenging. Interchangeability of Aadhar and PAN as well as concept of pre-filled income tax returns is a welcome step, he said. While filing of Income Tax Returns by certain classes u/s 139 would bring in more people under tax net; CA Kapil Bahiri concluded that Compliance burden is growing on a everyday basis and Business Houses are getting over burdened with new provisions.

CA. Milind Patel, expressing on the Indirect Taxes said that recommendations and decisions of GST Council has been ratified in the Current Budget. He informed that Commissioner has been given powers in this budget to extend due dates recommended by GST Council. Hon’ble Finance Minister while starting her deliberation on tax proposals has complemented, thanked abd appreciated the tax payers. The Country was expecting a Road map for next 5 years as the current government had got a clear mandate. There has been brought clarity in respect of interest on net payment of GST rather than gross payment of GST. Threshold limit increased from 20 lacs to 40 lacs for supply of goods. Much awaited Composition Scheme for Service Provider cum manufacturer / trader has been covered by Hon;ble FM n this budget. There is a need for every assessee to link their Aadhar number with their GST registration details. Sabka Vishwas Legacy Dispute Resolution scheme to settle old disputes in service tax / excise wherein benefit of up to 70% is proposed is a welcome step, he said. The National Appellate Authority is now introduced. There would be burden on general public at Re 1 per litre on petrol or diesel to fund various scheles. The customs duties have been rationalized.

While expressing his view on Impact on Capital Market Mr. Anuj Badjate, said that Markets always react on announcements. He commented that Government initiatives are linked like moving from Capitalist to Socialist i.e. taking from Rich to serve the social schemes. Increasing public shareholding from 25% to 35% in listed companies may have negative impact on the market. He opined that markets may correct in short term as FM’s speech does not give much required confidence but for long term he expected markets to be bullish.

Talking on Trade & Industry perspective CA. Sandeep Dhodapkar emphasized that this is the first budget of NDA Government in second innings and a 5 year roadmap should have been laid. There is a clear message for penal provisions in case of financial indiscipline and non compliance. However the issue of creation of job opportunities was found missing, he said. There are problems in real estate, aviation, auto and almost in most of the industries though we have ranked up in ease of doing business index on a global front. He complimented the Finance Minister for her initiatives for Start up’s and promotion for Solar energy and Electrical car segment. Though the core areas were addressed still looking at bigger picture few opportunities have been missed out said CA Dhodapkar.

While expressing his views on the economy CA. Samir Bakre marked that Indian Economy is targeted to move from a 3 Trillion $ economy to 5 Trilion $ economy. People of our country have reposed faith with an expectation for delivery. But for achieving the big target, our Indian Economy needs to grow at at least 9 / 10%. He praised Government initiatives of Ujjwala Yojna, Saubhaya Yojna, Benefit to poor etc. CA Bakre highlighted the issue of growing NPA’s and absence of liquidity in Market. He mentioned that although major economies in world are in problem at this stage still government steps to revive banking sector along with NBFC sector is remarkable. He praised initiative for Jal Shakti Department but criticized for non creation of job opportunities. The Railway issues were not considered much. He concluded that much was expected and much could have been done more in this budget.

CA. Abhijit Kelkar, RCM commented that CA’s play a crucial role in implementation of budget proposals. There was a emphasis on growth and development along with stress on revival of financial sector denoted by Banks and NBFC’s.

Earlier Chairman CA. Suren Duragkar, welcomed the participants in his welcome address and said that Nagpur is the only Branch across the country to organize an immediate reaction on Budget on the day of budget itself. Chairman while praising government initiative of “Gaon, Garib and Kisan” welcomed the speech of First Lady Finance Minister Mrs. Nirmala Sitaraman. The expectations of public from Modi Government is huge. He welcomed Government initiative of Pradhan Mantri Karmyogi Mandhan Scheme for traders and shopkeepers having annual turnover of up to Rs. 1.50 crores. He appreciated the government initiative for “Jal Jivan Mission” considering the issues of water shortage at all parts of country.

Views on Budget were also expressed by Past President of ICAI, CA Jaydeep Shah and Member of Committee on Management Accounting, ICAI, New Delhi CA Julfesh Shah.

CA. Sandeep Jotwani, Past Chairmen Nagpur Branch efficiently co-ordinated the programme and added valuable comments on the Budget and said that in overall perspective of the economy the finance minister has tried to give a balanced budget to boost sector.

CA. Saket Bagdia, Secretary of Nagpur Branch presented formal vote of thanks.

Prominently present on the occasions were CA. Kirit Kalyani, CA. Sanjay M. Agrawal, CA. Jiten Saglani, CA. Akshay Gulhane, CA. Swapnil Ghate, CA R. S. Temurnikar and large numbers of members.