'Central budget belies expectations', says Association of Small Industries

PUDUCHERRY: The Union Budget has not come on the line of expectations of several sectors of economy and the public and has belied many of the expectations, Association of Small Industries said.

Budget at ET: Budget 2012 | Union Budget | Live Union Budget Blog | Railway Budget | Budget News |Economic Survey of India

In a press release, Association Secretary K Parthasarathy said though it was expected that the budget would give relief in Peronal Income tax in line with the Parliamentary Panel's recommendations fixing a basic exemption limit at Rs three lakh, the Finance Minister had extended just Rs 20,000 hike in the existing limit, "which is as good as not being given".

Parthasarathy said the statutory excise tariff had been proposed to be raised from 10 to 12 per cent, which is bound to hike the cost of commodities.

On service tax he said that a negative list of 17 services were proposed and all others are brought under service tax which is bound to lead to inflation.

He said the silver lining was exemption granted to interest income in savings bank accounts for an aggregate extent of Rs 10,000 per annum, exemption from payment of advance tax and offering higher deduction in health insurance, medical expenses and certain interest receipts for senior citizens.