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* Infrastructure & Economic Development given a booster shot with full tax exemption given to Sovereign Wealth Funds of foreign governments on Capital Gains, Interest & Dividend with respective to their investments made in Infrastructure. However in our view more clarity on the means of financing the mammoth Rs103 trillion National Infrastructure Pipeline comprising of more than 6500 projects over the next five years would have cheered the financial markets.
* Abolishment of the Dividend Distribution Tax and making the dividend taxable in the hands of the recipient at their applicable rates should benefit several large cash-rich companies especially in the IT sector. The Annual Revenues forgone by the GOI on the removal of the DDT is Rs250 bn. Present regime of 10% tax on dividends till Rs10 lakhs stands abolished and would impact individual recipients. Dividend from Mutual Funds are now taxable in the hands of unit holders as per the slab rates (earlier they were at flat rates)
* The massive outlay of Rs2.83 trillion towards Agriculture, Irrigation & Rural Development spelt out through a 16-point agenda in our view would create a multiplier effect in the backdrop of a very good monsoon this year.
* National Skill Development, National Logistics Policy & extension of the PMJAY to Tier-2 & Tier-3 cities would in our view create employment opportunities.
* The Finance Minister in the budget made it very clear that the GOI would back Wealth Creators and has addressed the issue of Trust Deficit quite explicitly
* Customs Duty changes on sectors like Consumer/Electrical Appliances, Footwear, Auto Parts among others aimed at promoting “ Make in India”
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