Union budget 2022-23: Ludhiana traders, start-ups give thumbs up

Tribune News Service

Nitin Jain/Shivani Bhakoo

Ludhiana, February 1

Allowing revision in income tax (IT) returns for omission and mistakes, including declared income not reported, no increase in the existing taxes, boost to infrastructure and capping the surcharge on transfer of any long-term capital gains at 15 per cent has brought cheers to taxpayers and business community in Ludhiana, which is popularly known as Manchester of India.

Industrialists, self-employed, employees and lower, medium to high class in state’s business capital have hailed the tax cut for cooperatives, reduction of surcharge on unlisted shares, recognition to cryptocurrencies, increase in employees’ tax deduction limit and five big infrastructure projects announced by Finance Minister Nirmala Sitharaman while presenting the Union Budget today.

However, the common man found nothing lucrative or on offer for the ones looking for some relief from the rising inflation.

A cross-section of locals, to whom The Tribune spoke to elicit Budget reaction, also welcomed setting up of digital banking units in 75 districts and national programme for mental health, but lamented that the government had once again ignored the “aam aadmi”, who was finding it difficult to make both ends meet due to skyrocketing prices of essentials in the present times.

Suresh Kumar, an auto-rickshaw driver, rued: “The Budget means nothing for us as we are left to fend for ourselves with no relief offered to the poor and marginalised sections of society.”

“Allowing changes in tax returns through a one-time window till two years from the end of the assessment year on payment of tax will help taxpayers a lot,” said Vandana Singh, a tax consultant.

Shruti Sharma, a cooperative tax payer, welcomed the reduction in surcharge for cooperatives, which has been reduced from 12 per cent to 7 per cent for total income ranging between Rs1 and Rs10 crore.

“Extending the timelines for benefits under the new corporate tax regime is a welcome move,” said a leading industrialist, Sanjay Singhal. He said the government had announced a 15 per cent corporate tax rate for newly incorporated manufacturing companies till March 31, 2023, which has now been extended till March 31, 2024.

Shalini Sharma, who recently launched an online health consultancy portal, said: “Extension in period of incorporation for start-ups to avail of tax benefits by a year to March 31, 2023, will help the start-ups.”

“Reduction of surcharge on unlisted shares from 28.5 per cent to 23 per cent will ease exits from start-ups and unicorns, besides facilitating investment churn,” said Arvind Khanna, a share broker.

A leading food packaging industrialist, Ravi Bhushan, said: “The development of “one station one product” will leverage local produce carried on the Railways.”

“Introducing 400 new energy-efficient Vande Bharat trains in the next three years and rolling out postal railways for carriage of parcels will give thrust to a new business area,” felt a local entrepreneur Rakhi Sawhney.

“Proposal to introduce digital rupee using blockchain and other technology to be issued by the RBI, starting 2022-23, will boost digital economy,” observed a banker, Ridhima Awasthi.

Tarun Bhatia, an investment analyst, said: “Raising allocation for capital expenditure from Rs5.5 lakh crore to Rs7.5 lakh crore in 2022-23 will promote private sector investments.”

“Expansion of highways by 25,000 kilometres, allocation of Rs60,000 crore to the Nal se Jal scheme, five river link projects across various states and additional Rs48,000 crore corpus in the PM Housing Scheme will give a boost to the infrastructure development,” said Ranjit Bhullar, a builder.

A telecom industrialist, Rakesh Sharma, said, “Auction of 5G spectrum this year will take the connectivity industry to new heights.”

Advocate Jatinder Khurana, president of the Indian Taxation Advocates’ Association, expressed disappointment over the non-increase in the basic exemption limit and exemption limit under investment in tax saving schemes in the Budget. He said the provision for 30 per cent tax on income from cryptocurrency is an adequate step.

Ashpreet Sahni, chairman, CII, Ludhiana chapter, said the Budget was the continuation of reforms with focus on strengthening physical infrastructure and creating Jobs through enhanced public investment and capital expenditure and programmes like “Gati Shakti”.

Monika Kandhari, MD, MBD Group, said the Budget had taken care of the much-needed initiatives for the education sector, which had been reeling through a rough phase due to the pandemic.

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