| dc.description.abstract | While every union budget has its share of buildups and
letdowns, this year's budget has been received with
subdued reactions mainly because during the buildup
to the budget, the governn1ent kept throwing dark hints
about austerity measures and tax increases due to
empty coffers. The reduction in corporate tax, complete
exemption of inter-corporate dividends, abolition of
minimum tax on book profits, increase in tax benefits
under various schemes and the introduction of equitylinked
savings scheme are some of the proposals which
have been well received by the corporate world. A few
celebrated budget analysts, however, have expressed
deep concern over the abolition of the investment allowance
and the investment deposit scheme (Sections
32 A and 32AB). Industry circles have taken the position
that the proposal to withdraw investment allowance is
a "retrograde" step in that it will impede the growth of
the private corporate sector. This paper proposes to
examine whether such a point of view is sustainable. | |
