Why not roast us, rather than toast us?

Why not roast us, rather than toast us? The Budget has so many decoys and trap doors that the consumption booster claim falls as flat as old beer

IT is 2020 and disappointment aplenty as the Union Budget was presented yesterday. Some talking points are the zero tax resident angle and what I term as the Dubai collapse! India was taxing citizens of India only on the basis of residency by applying the test of number of days stayed outside India, but with the new budget proposals, any citizen of India living and working in any other zero tax country, say for example in the United Arab Emirates ( UAE) and not liable to pay tax there, would be taxed in India like a resident.

The removal of Dividend Distribution tax is a decoy as this is a mere perception of removal.

This is once again a u2018 feel goodu2019 provision but with a trap door! For doctors and other professionals, the threshold continues to be R 50 lakh and has been maintained at the same level, which brings me to the question of whether doctors, lawyers and other professionals will need tax auditor CAs more than ever? Zero is no hero, because zero deduction may sound like very good news, yet, the salaried class with an income of upto R 5 lakh can rest easy; but for anybody earning income above R 5 lakh, one has to pay taxes as per the new reduced slab rates but without deductions and exemptions.

I have to wonder whether there could not have been any other set of PSU disinvestments that have met targets that the Government of India needs to sell their stake in one of their most valuable companies i. e.

LIC? Every disinvestment should be co- terminus with value creation. Unfortunately, no such provisions have been introduced.

The common man, with his u2018 old is goldu2019 sentiment has received a setback with the removal of exemptions on Provident Fund. Indians have grown up investing in Provident Funds and superannuation funds. They received an exemption equivalent to the whole amount so contributed.

Removal of this exemption means the classic investment of the common man has become redundant. I hesitate to end with a question rather than have answers for tax payers. Yet end I must with the question: Is the budget a consumption booster or consumption roaster? Mitil Chokshi is a chartered accountant and senior partner, Chokshi and Chokshi, LLP Mumbai.

What is in it for me, this elderly gentleman seems to be thinking as he watches the budget speech at an electronics shop in Prabhadevi on Saturday. PIC/ ASHISH RAJE by invitation Mitil Chokshi Zero is no hero, because zero deduction may sound like very good news, yet, the salaried class with an income of upto R 5 lakh can rest easy; but for anybody earning income above R 5 lakh, one has to pay taxes as per the new reduced slab rates but without deductions and exemptions

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