Ranjeet S. Mudholkar, CEO, Financial Planning Standards Board India
Welcomed the reduction in the rate of Presumptive Taxation to 6 per cent under Section 44AD for small businesses with an annual turnover of up to Rs2 crore, and also the audit limit for businesses opting for presumptive scheme being increased from Rs 1 crore to Rs 2 crore. This would induce more businesses to opt for the Presumptive Taxation scheme, he said. Additionally, For professionals in presumptive scheme, the relaxation to pay advance tax only in one installment on 15 March instead of four earlier would result in smooth compliance and effective cash flow management.
Further, The reduction of the income tax rate to 5% in the lowest tax bracket will help individuals with more disposable income in their hands for investment and consumption.