Finance Minister Arun Jaitley has announced some tax sops to individuals and companies in his budget speech - a reduction in the tax rate from 10% to 5% for those in the Rs. 2.5 lakh - Rs 5 lakh income tax slab. Higher individual earners will however feel the pinch, with a new surcharge of 10% on those earning an income between Rs 50 lakh to Rs 1 crore.
The tax rate for companies with an annual turnover of upto Rs 50 crore has been brought down to 25% from 30%. The government is hoping that a lower tax rate for these SMBs will improve tax compliance, helping clean up the black money economy post-demonetization. Moody's called the budget "fiscally prudent" and that it would support reforms if well-implemented.
Against the new Trump ethos: In a boost to markets and more open investments, the FM has proposed abolishing the FIPB, which clears proposals for foreign investments up to Rs. 5,000 crore. This, Jaitley said, would be replaced with a simpler e-filing process aimed towards creating a better investment environment for FIIs,
Stock in spotlight: Suven LifeSciences announced a net profit jump of 34.3% for Q3 compared to the same quarter last year, with operating margins boosted by lower expenses and finance costs. QoQ for the company saw net profits fall 8.6%, although for the nine month period the company's incomes are up overall by 9.98% and profits up 32.77% compared to the previous year.
Photo of the day: Arun Jaitley with ministry officials, to take part in the Halwa Ceremony that marks the beginning of the printing of budget documents. PTI
