Rakesh Jhunjhunwala - market expectations not met!

The finance minister focused more on the “Aam aadmi” by increasing the personal income tax exemption limit by Rs 15,000 from Rs 2.25 lakh to Rs 2.40 lakh for senior citizens, by Rs 10,000 from Rs 1.80 lakh to Rs 1.90 lakh for women tax payers and by similar amount from Rs 1.50 lakh to Rs 1.60 lakh for all other categories of individual taxpayers. Further, he removed the surcharge of 10% on personal income tax.

However, Mukherjee left corporate tax unchanged. The budget proposed increase in the minimum alternate tax to 15% from 10% of book profit while allowing to carry forward tax credit
on MAT to 10 years from 7 years.

On securities transaction tax, where the market had expected some changes, the finance minister disappointed again by saying only new pension system trust would be exempt from STT.

On the other hand, he scrapped the fringe benefit tax and commodities transaction tax.

Big time investor Rakesh Jhunjunwala said the budget had failed to meet market expectations. “With the new government, there were expectations of some policy pronouncements,” Jhunjhunwala said to ET NOW.

Abolition of FBT was indeed positive news, as Rs 8,000 crore would directly go to India Inc but he felt the disinvestment target of Rs 1,100 crore is very low.

Mukherjee said the government would encourage divestment of PSUs but maintain 51% stake. He said the government would divest stake in RITES, Cochin Shipyard, TCIL, and that it sought to raised Rs 1120 crore from divestment proceeds.

“Reforms have led to the progress of the country, but what steps were taken in this budget? Market not disappointed with the tax proposals at all,” Jhunjunwala said, adding that the budget should have given incentive to infrastructure sector.

“The kind of fillip the market was expecting is missing,” he said.

via Economic Times