Daily GK Update: March 1st, 2016.

Focus on kick-starting stalled infra projects.

Infrastructure projects pose a huge a challenge because of their long-gestation nature, and also due to involvement of multiple stakeholders at different layers. For a variety of reasons, they are held up mid-way. This has been a major problem area for the economy. The budget has sought to address these concerns.

India Inc dissatisfied on corporate tax front.

The thrust given to rural and infrastructure sectors will have a multiplier effect on the economy but the budget has not met expectations on the corporate taxation front, India Inc said.

Tax proposals a mixed bag, more could have been done: experts.

Experts have termed tax proposals in the Budget as a mixed bag without major surprises as most key measures were on expected lines. However, they expressed doubts about government collecting the targeted higher indirect tax mop-up at Rs. 20,600 crore, saying in the past too this was not achieved.

Consumers to bear additional burden due to rise in indirect taxes.

While turning Santa for low income groups and farmers in the Union Budge 2016-17, Finance Minister Arun Jaitley has increased indirect taxes thus putting additional financial burden on the middle class and consumers in general. The extent of the burden depends on what the individual consumer would buy, both in terms of goods and services.

Start-up industry rues lack of tax incentives.

The start-up industry has provided a mixed response to Finance Minister Arun Jaitley’s budget. Top tech entrepreneurs and industry experts said the budget has addressed few issues including ‘ease of doing business’ in India. However, they are also disappointed that taxation norms for software companies were not relaxed.

Big bang reforms in FDI guidelines.

To facilitate ease of doing business for foreign investors and their domestic recipients, the Union Budget 2016-17 has proposed liberalisation of foreign direct investment (FDI) norms in a host of sectors.

A chance for tax evaders to come clean.

The government has decided to open a one-time, four-month compliance window for domestic black money-holders. This gesture is intended to help them come clean by paying tax and penalty of 45 per cent. “We are moving towards a lower tax regime with a non-litigious approach. Thus, while compliant taxpayers can expect a supportive interface with the department, tax evasion will be countered strongly,” Finance Minister Arun Jaitley said.

Defence allocation marginally up.

The government allocated Rs. 2,49,099 crore for the defence sector for the year 2016-17, which is 11 per cent more than the revised estimates of last year. The allocation does not include defence pensions as well as certain civil expenses of the Defence Ministry.