ICWAI welcomes the Budget proposals

G N Venkataraman, President, Institute of Cost and Works Accountants of India (ICWAI) lauds the Budget.

The Budget 2010-11 has been presented at the turbulent time when the inflation is rising and economic growth has to grow overcoming the economic slow down.

Every one had great expectations from the Finance Minister. The common man is worried about inflation, salaried class expecting a big tax relief, industry is worried about withdrawal of stimulus package and increase service tax rate.

Finance Minister Pranab Mukherjee has tried his level best in meeting the expectations of the segments of the society.

While presenting the Budget, he has kept in mind the increase in GDP to double digits, without rolling back the stimulus package in totality.

The ICWAI welcomes the Budget proposals:

• Rationalisation of personal Income Tax slabs and also providing for deduction upto Rs. 20,000 for investment in Infrastructure Bonds.
• Reduction in surcharge rate to 7.5% on corporate income tax.
• Investment linked deduction instead of Profit linked deduction for hotel industry.
• Weighted deduction for inhouse R&D from 150% to 200%, for research houses from 125% to 175% and 125% for payment approved associations doing social and statistical research.
• Reduction of compliance burden by increasing the turnover limit of businesses to Rs. 60 lakhs and professional to Rs. 15 lakhs.
• Retaining rate of Service tax to the present level of 10% is very bold step taken by the Finance Minister.

The Institute welcomes the proposal to establish National Clean Energy Fund for research in the activities relating to pollution.

The ICWAI has already decided to have Green Buildings for all the regional councils and the chapters of the Institute.

The Institute also welcomes the proposal relating to LLP for not charging capital gain tax on conversion of general partnership firm into LLP.

The Institute feels that instead of increasing the excise duty on the petroleum products, the Finance Minister should have waited for implementation of the report of Parikh Committee on Petroleum pricing, which is expected to result in increase in the pricing in the petroleum products affecting the aam adami.