The post-election Union Budget of 2019 is primarily aimed at promoting foreign inward investment and broadening the tax base. While the Budget provides some respite to India Inc. by lowering tax rates and providing clarifications to reduce litigation, it has introduced new levies to prevent tax evasion.
The Budget 2019 aims at further incentivising foreign investment
into India and protecting the exchequer's interest through
speedy, efficient and greater tax recovery. The focus has been on
rationalization of provisions, broadening the tax base to increase
tax recovery and improving tax administration. To this effect, a
concerted effort has been made to remove ambiguities in tax laws to
reduce litigation and encourage efficient dispute resolution. With
an aim to promote alternate investment funds, spur the growth of
start-ups and remove fetters to the application of Insolvency and
Bankruptcy Code, the Budget seeks to provide a boost to doing
business in India. Tax incentives have been proposed to discourage
growth of a cash economy. From a Goods and Services Tax and customs
standpoint, the Budget aims at promoting the 'Make in
India' scheme and incentivises manufacturing in India.
Download >> Post-Election Budget 2019: Key Tax Proposals
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.