By Mr. Udaya Bhaskar Rao Abburu, CEO & Managing Director, iRAM Technologies
The Government has been paying a lot of attention towards energy efficient processes to help streamline business and markets today, and hence we are hopeful that then honourable Finance Minister will announce awaited reforms and allocation of resources to help the sector achieve more growth at the grassroot level.
The Govt Infra projects should provide exception from GST and Customs duty to lower the cost of project. This will help in contractors and Large system integrators to make investments available for multiple projects. Consequently, all PPP projects shall be payment / legal guaranteed by Govt, so that investments can happen in this sector without a hesitation about legal troubles when Govt changes.
We would expect lowering the GST on Batteries which are used in Electronic Vehicles. Though GST Counsel has reduced the GST on EVs from 18% to 5%, they did not reduce the GST on batteries fitted at factory from 12%. This needs to be lowered further as batteries form major portion in any EV. This change will make affordable EVs.
Apart from that, Income Tax rate slabs have to be reduced to make the cash available for tax paying people, so that they can support the economy growth by spending more and income-tax deduction towards interest paid on a home loan, on a self-occupied property should be doubled. This will help the real estate sector and also to banking sector.
In addition to this, deduction under Section 80C of the Income-tax Act, 1961 should be increased to 5 Lakhs, which will then enable employees to save money for their retirement and exemptions for individual tax payers such as Children education, differently abled dependent medical expenses should be increased at par with real expenses. Currently children education expenses are limited to Rs 100 to Rs 500 Per month. This is not sufficient for the present landscape. We expect total education fees/dependent medical expenses to be considered for tax exemption.
