Budget 2014-15 ‘low key’ yet effective, chiefly from tax perspective
The Budget 2014-15 is widely being considered a ‘low key’ yet effective and far-reaching budget, especially from the tax perspective.
The evident lack of needless flamboyance in the Budget is essentially a reflection of Finance Minister Arun Jaitley’s personal style. On the tax side, the Budget boasts of a number of far-reaching amendments which are largely positive.
One of the strongest positive signals of the Budget is the overturning of the 2012-introduced retrospective amendment on indirect transfers. Another big plus in the Budget is the effort to bring about an improvement in the mechanisms for resolution of disputes.
With transfer pricing being one of the biggest disputes, the positive changes which the Budget has brought include the rollback of APAs for four years, use of a range concept, and multiple year data. These changes will go a long way in alleviating the pain on transfer pricing issues.
Another welcome proposal in the Budget is the 15 percent additional investment allowance on machinery and plant – a move which will give the manufacturing sector a notable boost.
Finally, among the other positives in the Budget include extension of tax holiday for the power sector for three years, as well as the legislative clarity about the classification of income arising to FIIs a ‘capital gains.’
Source- The Financial Express
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