Page 3 - Union Budget_2019

Union Budget 2019

FOREWORD

Dear Reader,

Its indeed our pride and privilege to bring this 10 edition of our Union Budget Analysis to our esteemed
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readers. What started in 2011 as a trial, has grown to be one of our premier publications widely read by
industry leaders, bureaucrats, professionals and lawyers. The tenth edition, in tune with our effort to bring

something more, has in-depth statistics of state-wise GDP data and fiscal positions along with comparing
India’s stature with its global peers. As a nation we have moved a long distance over the past decade

however, every budget only reminds us of the path ahead. This year again, in keeping with the tradition of
the legislator, we have nearly 70 amendments, which is around the average for the past decade, in the Direct

taxes front. The direction of most of these amendments clearly shows the focus areas of the Government
namely: widening the tax base, expansion of TDS, increase in compliance and a check on tax evasion. The

significant increase in surcharge on the hyper-rich seems to have received large scale flack especially from
the FPIs- though from a tax payer’s perspective, this might look onerous, as a nation, this initiative and
direction clearly leads to one path – growth in collections for larger national prosperity.

The provisions pertaining to rationalisation of certain aspects of taxation like relief from disallowance on
non-deduction of TDS from non-resident payments and prefilling of returns with expansion in scope of
annual returns are welcome steps. Policy thrust is clearly evident from enhanced benefits for affordable

housing and electric cars. Expansion of the scope of the tax evasion provisions to include non-residents and
widening the ambit of Country by Country Reporting read in the light of the recent circular on compounding

of offences, makes tax evasion in India, a serious crime with severe consequences. These and many more
proposals have been discussed at length in this publication.

As always, I would like to hear from you. Please feel free to share your feedback by writing to me at
divakar@dvsca.com.

With Best Regards

Divakar Vijayasarathy

Founder and Managing Partner

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