'The overall impact will be somewhat adverse'

Srinivisan, CEO & MD, ICICI Infotech

On the Impact of the Budget on the Economy:

I am of the opinion that the overall impact will be somewhat adverse effect by changing the dividend tax paradigm. Apart from that there doesn’t seem to be a clear direction as to how it will overall effect the countries economy.

Industry:

On the IT industry front I think that the deduction available under section 10A of income tax act which has been reduced from 100% to 90% would result in a minor disadvantage for the IT industry.

Company:

There are no significant measures announced for the industry, hence there is no noteworthy impact on ICICI Infotech as an organisation per se.

General:

The overall long-term implications of the budget are not very clear. In developed countries there is a general expectation of a stable tax regime, to enable the corporates to make long-term plans and projections.

Frequent modification of various elements of tax, excise and customs duties do not help in energizing the economy as it makes it difficult for companies to plan ahead predictably.

Powered by

YOU MAY ALSO WANT TO READ:
The Rediff Budget Special
The Rediff-Capital Market Budget Analysis
More Budget Stories
Money