rediff.com: Industry welcomes amendments to Finance Bill

Industry captains on Friday welcomed the changes in the Budget proposals announced by Finance Minister Yashwant Sinha saying some aberrations, which were there have been corrected and it should not be seen as rollback.

Commenting on the changes, Confederation of Indian Industry president Sanjiv Goenka said, "These changes were welcome and took care of many of industry's concerns".

"There were some aberrations in the tax proposals, which the finance minister has corrected and should not be seen as rollback," Goenka said in a statement in New Delhi.

Welcoming the decision to restrict service tax on life insurance only to risk premium, he said this was a step in the right direction in view of the fact that imposing tax on the whole amount would have hampered the growth of this sector.

Federation of Indian Chambers of Commerce president R S Lodha welcomed the amendments with regard to direct and indirect taxes and said, "The increase in limit under Section 88 for tax rebate from 10 to 15 per cent, marginal relaxation in case of dividend distribution tax, withdrawal of excise duty on spares and accessories of bicycles, handpumps among others, extension of backward area benefit by two more years were what we had been looking forward to."

The Chamber also welcomed the decision to deduct tax at source on dividend income over Rs 1000 and extending deduction under Section 80L within the overall ceiling of Rs 9,000.

The Associated Chambers of Commerce and Industry president K K Nohria said the finance minister had appreciated the real problems of the individuals as well as corporates, which is reflected in the tax sops extended by him.

He said scrapping the proposed service tax on life insurance premium, enhancement of ceiling for investment by retired employees in public and private sectors are both investment and saving-oriented measures.

Welcoming the measures, PHDCCI president Arun Kapoor said withdrawal of certain provisions in the Budget proposals will address the apprehensions expressed by industry only partially.

Kapoor said though the Sinha has tried to give some relief to middle class it has been a 'half-hearted' approach.



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