Budget Reactions From PwC

"In the midst of global economic slowdown, which has also affected India in the form of inflation, rising fiscal deficit and weakening of the rupee, the Finance Minister has done a commendable job in trying to address the above issues through pragmatic measures of promoting investments in key sectors, e.g. infrastructure, power, etc."

Shyamal Mukherjee - Joint Tax Leader, PwC India

”Finance Bill 2012 would be remembered for its retrospective amendments to overturn judicial interpretations favouring taxpayers.  While India would be able to assert its taxing rights, the impact on its investor friendly image needs to be assessed.”

Rahul Garg - Leader Direct Tax , PwC India

"Given that FM had a little choice, the proposals are reasonably balanced and estimates realistic.  Introduction of General Anti Avoidance Regulations would impact the  tax payers  and result in  more litigation.   Removal of cascading effect of Dividend Distribution Tax  and reduction of withholding tax on  interest on certain external commercial borrowings  is  welcome.  The proposals clearly as he said are in line with  road map to Direct Tax Code. Overall encouraging as it could have been worse.

Finance Minister's proposals for  individuals and small businesses are positive as these proposals provide lower tax burden by lowering the rates and permitting investment incentives.  Also,  enhancing the limit  to  rupees one crore small businesses presumptive taxation would  make tax reporting easier for small businesses.

Vivek Mishra, Leader Indirect Tax, PwC India

"The movement of service tax to a “negative list”, where every service will be taxed with limited exemptions is extremely significant.  It could deepen the service tax base and simplify the tax.  It would be interesting to see how the sectors would react, that are newly included in the service tax net.”

Kuldip Kumar - Executive Director - Tax & regulatory Services, PwC India

"Raising of exemption limit from Rs 1.8 lacs to 2 lacs and introduction of deduction of saving bank interest upto Rs 10,000 to benefit everyone. But tax payer having income more than 8 lacs to benefit the most as they can save upto INR 22,660 since 20% tax slab has been expanded from income level of Rs.5 - 8 lacs to Rs 5 -10 lacs."

Rahul K Mitra, Leader Transfer Pricing , PwC India

"The introduction of APAs is a path-breaking initiative in the field of transfer pricing in India. This should provide greater certainty to taxpayers and also reduce protracted litigation. One expects that the Indian government would administer the APA programme with pragmatism, so as to garner the confidence of MNCs and also other countries."