KOCHI: Amidst hectic engineering consultancy work, Sajith J Palakkappilly was constantly monitoring the Union Budget proposals. There were speculations that the personal income tax rates would be brought down after demonetisation to encourage more people to come under the tax purview.
He was also keenly watching for any announcement to revive the real estate sector. “The reduction in presumptive tax from 8 per cent to 6 per cent will benefit small businessmen like me,” he said.
Sajith said the decision to prohibit cash transactions above Rs 3 lakh would clean up the real estate sector where large portions of cash transactions are the norm. Aadhaar based smart cards, he said, would benefit his aged parents. On the flip side, he said, the status quo on personal income tax slabs above Rs 5 lakh is disappointing.
Lack of incentives for those who deposit money in banks will discourage savings in safe instruments, he said.
“My investments are in bank FDs and the Budget offered no incentives for the likes of me who put faith in savings,” Sajith said. He felt the Budget would increase the cost of living as smartphones, air travel and branded retail garments would cost more, courtesy hike in taxes for these goods and services.