Hyderabad, February 27: The much-maligned software professionals, who are looking forward to regaining their lost glory as the new age maharajahs, reacted cautiously to Pranab Mukherjee’s budget.
Many expressed happiness at the revised tax slabs but several others struck a cautious note citing increased fuel prices and taxes on other fronts.
‘‘The reduction in personal income tax and introduction of additional investments is a welcome relief for IT professionals. However, the IT industry would have loved to see the extension of tax benefits under the STPI scheme beyond 2011. It would have given a boost to the industry, which is recovering very well in the last three months. I hope the government will consider this in the coming days.
Overall, it is a balanced budget,’’ said Narasimha Rao, President, Information Technology & Services Industry Association of Andhra Pradesh.
Echoing his views, Vamsikrishna M, Business Manager, Sriharshi Infoway Pvt Ltd, said, ‘‘Besides, the personal income tax move, exemption from audit for small and medium industries below Rs 60 lakh investment is also an encouraging sign. It will help small and medium entrepreneurs.’’ Kamalakar, senior architect, Cordys Software India (Pvt) Ltd pointed out: ‘‘As salary appraisals have been hit by the economic downturn, even 5 per cent tax saved is 5 per cent income earned. However, we need to watch out for commodity and goods prices due to the extra taxes and levies introduced. This may affect us indirectly.’’ Striking a similar note, Ketan Agarwal, software engineer (SE), Infosys Technologies Pvt. Ltd, said, ‘‘the budget offered considerable relief to income tax payers but balanced it by increasing the price of petrol and diesel.
I am not happy with the budget as it has nothing in store for IT employees like me and will not help in saving something for the future. Things will remain the same as prices of basic commodities and essential goods will keep increasing.’’ The government employees seem to be pretty happy with the tax slab revision, coming as it does close on the heels of pay commission recommendations.
‘‘We welcome the budget as most of us draw salaries between Rs four lakh and Rs six lakh,’’ said Government Doctors’ Association president P Srinivas.
–Agencies