Jaitley in his second Budget speech in February 2015 had announced phasing out of tax incentives with effect from April 1, 2017 and reducing the corporate tax rate from 30% to 25%. In a survey by Deloitte Touche Tohmatsu India LLP, commissioned on budget expectations of India Inc, 53% of the respondents expect the corporate tax rate to be reduced this time. "Given the strict measures taken by the government in curbing black money, it may be the appropriate time to reduce the tax rate," Deloitte noted. Deloitte further said, 40% of the respondents agree that complete phase-out of tax incentives is a good measure and will reduce litigation. An equal number of participants believe profit-linked tax incentives should continue for growth sectors like infrastructure.

Source: dna January 15, 2017 05:50 UTC