DUBAI - Indian businessmen and professionals in the UAE welcomed budget proposals made by Finance Minister Pranab Mukerjee on Friday as “balanced and pragmatic” with a focus on
fiscal prudence.
While the proposal to lower the Tax Deducted at Source rate on interest earned on NRI deposits from 20 per cent to 10 per cent was greeted by non-residents as a step that would encourage non-residents to deposit their money with banks in India, the forward-looking and inclusive budget also drew widespread applause for its focus on rural development, health and education, housing for the poor, agriculture and infrastructure growth.
The roadmap drawn to reduce fiscal deficit from 6.5 per cent to 5.5 per cent next year and 4.1 per cent thereafter has been expected, but the biggest surprise, most of those who spoke to Khaleej Times confessed, was the reduction of personal taxation – a move that could put around 3-4 per cent additional income in the hands of the taxpayer.
Source : khaleejtimes.com