Is the Small Taxpayer Unhappy With Modi 2.0’s First Union Budget?

Is the common taxpayer unhappy with the Budget? To understand this, The Quint speaks to tax expert Sudhir Kapadia.

The Quint speaks to tax expert Sudhir Kapadia

(Photo: The Quint)

Finance Minister Nirmala Sitharaman presented the Modi 2.0 government’s maiden Budget on 5 July. However, the Budget saw no major changes to the tax slabs, leaving little for the common tax payer to rejoice over.

To understand this and the reasons behind the government’s decision, The Quint speaks to tax expert Sudhir Kapadia.

Is the Common Tax Payer Disappointed With the Budget?

The relief for small taxpayers was given in the Interim Budget. Hence, now, the government wasn’t in a condition to provide more relief. So, it would be wrong to even have such expectations. Bringing corporate tax to 25 percent was in the works for many years and the government has put it into practice now. However, only companies with a Rs 400 crore turnover will benefit from this. Bigger companies will get no profit from this.

Will a Tax Hike on the Rich Affect Investment?

Any extra tax will go into the government’s kitty. The government will then decide how to spend this money. If this money were with companies, they would have decided where to invest. Increase in tax rate could lead to a situation where other countries will try to attract the companies.

(Watch the video for more.)